GUNTUR: Rice prices across Andhra Pradesh have been steadily declining over the past few months, driven by the arrival of stocks at highly competitive prices from neighbouring states as well as a shift in international demand. While local cultivators are scratching their heads, consumers are benefiting as prices have dropped by an average of Rs 5 to Rs 7 per kilogram across nearly all varieties.

Wholesale traders report that the price of many popular rice varieties has fallen significantly. For instance, the price of HMT rice has dropped to Rs 62 per kg from Rs 67 per kg, while Kurnool Sona is now selling for Rs 52 per kg, down from Rs 58 per kg. BPT rice, previously priced at Rs 54 per kg, is now available for as low as Rs 48 per kg. Additionally, supermarkets are offering it at much lower prices, with some varieties of Kurnool Sona selling for as little as Rs 45 per kg.

Speaking to ‘The Hans India’, general secretary of the Guntur district unit of the Andhra Pradesh Rice Millers Association, Cherukuri Subba Rao, said, "Farmers in Karnataka, Chhattisgarh, Maharashtra, Tamil Nadu and Telangana produce rice at a lower price. Although Maharashtra and Karnataka states are producing rice, local consumption is less. There is no levy on stocks moving from these states to AP.

Wheat is the staple of most people in Maharashtra. Farmers in Maharashtra, Chhattisgarh, Karnataka and Telangana use less of fertilizers and pesticides. As a result, their cost of production is less. They are now moving rice stocks to AP at a comparatively lower price. In Karnataka, millets are the staple. Surplus rice stocks from there find their way to AP.”

In Telangana, the distribution of fine-quality rice by the state government through the Public Distribution System (PDS) has reduced the demand for ordinary varieties. "About 65 per cent of the population in Telangana is consuming this PDS rice," Subba Rao said.

On the international front, a new tax imposed by the US government on Indian rice imports has exacerbated matters for exporters who now are curbing exports and increasing domestic supply.

Wholesale trader K Srinivasa Rao pointed out that while retailers add Rs 2 to Rs 4 per kg for transportation and profit, the overall decrease is still a significant relief for consumers. He mentioned that changing lifestyles and increased health consciousness have led some people to consume rice only once a day, further impacting local demand.

In Andhra Pradesh, though an estimate 1.4 crore families with white ration cards are getting PDS rice, they use it mainly for making idli, dosa and lemon rice for breakfast.