Why early indica rice temporary storage auctions are seeing sluggish sales

On October 13, the national temporary storage early indica rice competitive bidding sales transaction fair held its first auction after a three-month gap, but the transaction results were less than ideal. That day, 492,310 tons of 2013 early indica rice were planned for sale, but actual transactions totaled only 516 tons, a transaction rate of 0.10%, with an average transaction price of 2,640 yuan/ton. The temporary storage early indica rice auction held again on October 20 was even entirely unsuccessful. First, the supportive price purchase period has ended, and market grain sources remain relatively ample. Although this year's early indica rice output declined somewhat, due to insufficient market demand, enterprises were more cautious in purchasing, and the trend remained sluggish. Second, the scale of temporary storage of early indica rice has expanded, and market pressure has only increased. Third, the impact of imported rice has not diminished, and early indica rice has been hurt the most. Fourth, rice demand has declined somewhat, with early indica rice showing the largest drop.

Given that early indica rice market grain sources are more ample than the same period last year, pressure from rice imports is increasing, and demand for early indica rice is declining, it is expected that temporary storage early indica rice auctions will continue to be quiet, and unsuccessful auctions are not surprising.