Tamil Nadu: Rice prices may hit Rs 100 per kg before Deepavali

CHENNAI: Rice prices in Tamil Nadu are likely to rise further ahead of Deepavali, with rice mill owners warning that the price of some varieties could touch Rs 100 per kg before the festival, said a Daily Thanthi report.

A shortage of paddy and rising demand across several states have already pushed rice prices up by Rs 20 to Rs 40 per kg.

Rice prices rise by Rs 300-600 per bag

Rice prices have increased sharply over the past one or two months, with the price of a 25- to 30-kg bag rising by Rs 300 to Rs 600, depending on the variety.

Deluxe Ponni, which was sold at Rs 1,400 a bag, is now priced at Rs 1,800. Ponni rice has increased from Rs 1,600 to Rs 1,950, while White Ponni has gone up from Rs 1,900 to Rs 2,300.

Idli rice, which was earlier sold at Rs 900, now costs Rs 1,200, while raw rice has increased from Rs 1,500 to Rs 1,800. A 25-kg bag of Sivaji Ponni has risen from Rs 1,800 to Rs 2,400. A 30-kg bag of Basmati rice has also increased from Rs 3,300 to Rs 3,600.

Paddy shortage pushes up rice prices

Tamil Nadu does not produce enough fine varieties of rice to meet local demand. As a result, large quantities of fine paddy are brought into the State from Andhra Pradesh, Telangana, Karnataka, West Bengal and Maharashtra.

The paddy is purchased by rice mills, processed and sold in Tamil Nadu. Rice is also sent to other States and exported after meeting the local demand.

However, a shortage of rice has now been reported not only in Tamil Nadu but also in several other States. This has pushed up prices, while stocks of paddy at rice mills in Tamil Nadu have also fallen.

Mills seek more paddy from other States

Rice mill owners and paddy traders have said that more paddy needs to be procured from other States and stored at mills to prevent a further rise in prices.

However, paddy consignments coming into Tamil Nadu from Andhra Pradesh and Telangana are reportedly being sent back by officials of the Tamil Nadu Civil Supplies Corporation in Tiruvallur and Kancheepuram districts, with police assistance.

Paddy traders, commission agents and rice mill owners have warned that if the inflow of paddy is not increased, rice availability could fall further and prices may rise significantly before Deepavali. They said the price of some varieties could reach Rs 100 per kg ahead of the festival.