Tamil Nadu: Rice prices rise sharply as paddy supplies fall

Chennai: House holds across Tamil Nadu are paying more for several popular rice varieties after a fall in paddy output and slower arrivals from neighbouring states pushed prices higher over the past month.

Ponni rice has risen from Rs 65 to Rs 78 a kg. Mannachanallur Ponni now costs Rs 68 a kg, up from Rs 60, while a premium Ponni variety has climbed from Rs 65 to Rs 82. IR-20 rice is selling at Rs 60 a kg, compared with Rs 50 last month.

Traders have changed prices three times in the past 50 days. The increase extends beyond fine varieties. Raw rice, previously sold at Rs 45 a kg, now costs Rs 68 in some shops.

Traders expect prices to remain under pressure if interstate supplies stay low and losses in the kuruvai crop further reduce local availability.

Cultivation in the Cauvery Delta has suffered from poor rainfall and a shortage of irrigation water. Harvests in Andhra Pradesh, Telangana, and Karnataka have also declined, cutting the quantity of paddy reaching Tamil Nadu’s rice mills.

Mills are paying about Rs 44 a kg for paddy brought from other states, compared with Rs 32 in the previous season. Mill owners link the reduced arrivals partly to a poor April harvest. Fine Ponni rice is currently selling for around Rs 75 a kg in the wholesale market.

The impact is especially pronounced for Ponni because it is a staple choice for many consumers in Tamil Nadu, although the state grows relatively little of the fine variety it consumes. This leaves prices exposed to lower harvests elsewhere.

Traders remain concerned that a weak kuruvai harvest could prolong the pressure on prices.

Mill owners, however, expect paddy arrivals to improve in the coming months and believe prices could settle if supplies recover. Their assessment differs from retailers’ concerns about further increases, reflecting uncertainty over how quickly new stocks will reach the market.

The price rise has prompted calls to expand cultivation of fine paddy varieties preferred by Tamil Nadu consumers. Greater local production could make supplies less vulnerable to poor harvests in neighbouring states.

In the immediate term, the course of rice prices will depend on whether fresh paddy arrivals are sufficient to meet demand.

ABOUT THE AUTHOR

The Hans India