TIRUCHY: Rice prices, particularly those of fine varieties widely consumed in Tamil Nadu, have risen by up to 20 per cent in the past month amid poor paddy production and a decline in arrivals from neighbouring states. Traders fear prices could increase further in the coming days.

Poor rainfall and Karnataka's failure to release water for Delta irrigation affected paddy cultivation in the region. The neighbouring states, including Andhra Pradesh, Telangana and Karnataka, also saw a decline in cultivation, leading to reduced arrivals and a sharp rise in rice prices.

Ponni rice, a popular fine variety in Tamil Nadu, is now priced at Rs 78 per kg, up from Rs 65 a month ago. The local Mannachanallur Ponni variety is being sold at Rs 68 per kg, against Rs 60 previously. A premium variety of Ponni has risen to Rs 82 from Rs 65, while IR-20 is being sold at Rs 60 per kg, compared with Rs 50 last month.

Traders said prices had been revised three times in the past 50 days.

“For the first time, rice prices have risen so sharply, and we fear they may increase further. Raw rice, which was sold at Rs 45 per kg, is now priced at Rs 68 due to the decline in arrivals from neighbouring States,” said V Narayanan, proprietor of Sri Abhirami Traders in Tiruchy.

Narayanan said losses in the kuruvai crop could push prices higher, as neighbouring States were facing a similar situation.

However, M Sivanandan, secretary of the Tamil Nadu Rice Mill Owners Association, said the situation could stabilise as paddy arrivals were expected to improve in the coming months.

“Due to the poor harvest in April, paddy arrivals from neighbouring states declined. We procured paddy at Rs 44 per kg from other states, compared with Rs 32 per kg during the previous season. Fine variety Ponni is currently being sold at around Rs 75 per kg in the wholesale market. Prices have stabilised and may not rise further if paddy arrivals improve,” Sivanandan said.

He said fine variety Ponni was widely preferred by consumers in Tamil Nadu, while its cultivation was limited in the State, making the market dependent on supplies from neighbouring States.

He urged the State government to encourage farmers to cultivate fine paddy varieties suited to local consumption, which, he said, could help stabilise rice prices.