Fine rice prices climb in TN amid rising costs, tighter supplies

Chennai: Consumers across Tamil Nadu are paying more for rice as rising production costs, lower arrivals from other states and stronger demand for premium varieties drive up prices.

Fine and superfine rice have recorded the steepest increases over the past 10 days. Superfine rice is now selling at Rs 1,950 for a 26-kg bag, up from Rs 1,720. A similar bag of fine rice costs Rs 1,640, compared with Rs 1,500 earlier, increasing household spending on a staple food.

The upward trend has extended to common rice varieties, which usually become costlier between October and December. Their customary seasonal increase ranges from Rs 50 to Rs 90 per bag.

Rice prices generally rise during the gap between the Kuruvai harvest and the arrival of the Samba crop. This time, however, premium varieties have registered increases above the normal seasonal levels.

The pressure on prices reflects a combination of higher paddy procurement rates, increased fertiliser and fuel costs, and shortages of agricultural labour.

Meanwhile, expanding consumption of fine rice in Chennai, Madurai, Coimbatore and other cities has strengthened demand.

From September 1, paddy procurement prices increased to Rs 2,750 per quintal for fine varieties and Rs 2,600 for common varieties, adding to the cost of rice entering the market.

Higher government procurement prices encouraged more farmers to sell their paddy through direct procurement centres during the 2025-26 season, leaving fewer stocks available for private buyers.

Government paddy procurement reached a record 64.2 lakh metric tonnes during the season, compared with 47.98 lakh metric tonnes in 2024-25.

Despite the increase, industry representatives maintain that Tamil Nadu faces no rice shortage. Prices have reportedly stabilised, with supplies expected to improve after the Samba harvest concludes in January.

Predictions of prices reaching Rs 100 per kg by December or January have been dismissed. The industry has also sought withdrawal of the five per cent GST on prepacked, prelabelled rice bags weighing up to 25 kg.

Tamil Nadu requires about 91 lakh metric tonnes of rice annually, producing 70 lakh to 75 lakh tonnes locally and sourcing the balance from other states.

Markets in Madurai, Thanjavur and Tiruchy have witnessed similar increases. Superfine paddy now costs around Rs 45 per kg, while rice sells for approximately Rs 75 per kg. In Thanjavur, a 26-kg bag of Ponni rice has become costlier by Rs 300.

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