Surging rice, chicken & egg prices burn through household budgets in Tamil Nadu; add to food inflation worries

CHENNAI: A steep decline in paddy cultivation, mounting water stress, and the lingering impact of a prolonged summer have pushed up the prices of rice, chicken and eggs across Tamil Nadu in the recent few weeks, straining household budgets and raising concerns over food inflation in the State.

While traders and farmers blame the spike in rice prices on poor agricultural output and shrinking cultivation, poultry experts attribute the increase in chicken and egg prices to heat-induced production losses and soaring feed costs.

PS Vinayagam, a wholesale and retail rice trader, said rice prices have increased by Rs 8 to Rs 10 per kg across most varieties over the past few weeks.

"The price of a 26-kg bag has gone up by Rs 200 to Rs 250, increasing to nearly Rs 1,800 from around Rs 1,550, depending on the variety. Tamil Nadu is now procuring substantial quantities of rice from Andhra Pradesh, Karnataka, and Telangana because local production has dropped sharply. Unless production improves, there is little possibility of prices coming down in the near future," he told DT Next.

The production shortfall has been severe in the Cauvery Delta, where poor rainfall and inadequate water release from the Mettur reservoir have drastically reduced Kuruvai cultivation.

According to official sources, the area under cultivation has shrunk alarmingly to merely 2.2 lakh acres from 6.3 lakh acres in the last season (the target was also reduced to 3.5 lakh acres). Without adequate water in Cauvery, farmers are dependent on borewells, but frequent power cuts have hit most of them, and only those with diesel generators have taken the risk this year, sources said.

"The crop has been severely affected due to the absence of rainfall and inadequate water availability. Coarse rice prices have increased by up to Rs 10 per kg, while fine varieties have risen by as much as Rs 30 per kg. If the situation continues, prices could increase further in the coming months," said KV Elankeeran, president of the Federation of the Cauvery Delta Irrigation Farmers Association.

Seeking immediate intervention, Elankeeran urged the State government to convene a tripartite meeting involving farmers, traders, and officials to chart measures to stabilise prices. He also suggested temporarily regulating the movement of rice outside the State until local supplies improve.

The impact is already being felt in households.

"We have switched to a lower-priced variety of rice (IR64 - Rs 47/kg) because the premium varieties (Ponni - Rs 70 per kg, earlier Rs 57 per kg) have become unaffordable. Chicken has become an occasional purchase now, and even buying eggs every day has become expensive," said M Lakshmi, a homemaker in Perambur.

The pressure has extended to the poultry sector as well. According to the Broiler Coordination Committee (BCC), Palladam, the live broiler rate climbed from around Rs 100 per kg in June to nearly Rs 150 by mid-July before touching Rs 160 by the end of July. Although prices have eased marginally, the live bird rate stood at Rs 130 per kg on Tuesday.

However, according to Chennai Mutton and Chicken Merchant (Retailers) Association, the live bird price stood at Rs 144 per kg on Tuesday. Retail chicken prices currently hover around Rs 280 per kg for dressed chicken, Rs 320 per kg for skinless chicken, and Rs 340 per kg for boneless chicken in several markets across Tamil Nadu.

Egg prices have also remained elevated. While the average retail price stood at Rs 6.61 per egg on Tuesday, consumers in several localities are paying between Rs 7.50 and Rs 8 apiece.

G Balamurugan, a private-sector employee, said the simultaneous increase in the prices of essential food items has upset his monthly household budget. "Rice, eggs, and chicken are staples for middle-class families. When all three become expensive at the same time, we have no option but to cut spending on other necessities," he said.

Dr M Balaji, Tanuvas professor and coordinator of the Tamil Nadu Veterinary Graduates Federation, said prolonged summer conditions had reduced poultry production, while rising feed costs had sharply increased production expenses.

"Soybean, a key feed ingredient, now costs around Rs 60 per kg, while maize has increased to about Rs 23 per kg. These higher input costs, coupled with heat stress, have affected both broiler and egg production," he said.

Balaji noted that the recent correction in egg prices should not be misconstrued as a decline in production costs, as it was largely driven by seasonal demand. He called for a comprehensive price stabilisation framework centred on feed security, scientific market monitoring, climate-resilient poultry infrastructure, institutional procurement during market downturns, export diversification, and targeted support for small and medium poultry farmers.

"The objective should not be to artificially control prices but to reduce extreme market volatility, protect farmers' livelihoods, and ensure affordable animal protein for consumers," he told DT Next.

Agriculture - Farmers' Welfare Minister Vinoth said the government was closely monitoring the situation.

"The inflow of water from Karnataka has begun and is gradually increasing. We are continuously reviewing the situation and discussing alternative cropping options with farmers wherever necessary. Necessary measures are being taken to increase production, while the Food and Civil Supplies Department is working to contain the price rise," added the minister.

RISING RICE PRICE

Rice prices: Up by Rs 8–10 per kg across most varieties

26-kg rice bag: Increased by Rs 200–250, from around Rs 1,550 to Rs 1,800

Reason: Sharp fall in paddy production, poor rainfall, inadequate Mettur water release, resulting in increased dependence on rice from Andhra Pradesh, Karnataka and Telangana

Kuruvai cultivation: Down from 6.5 lakh acres last year to about 2.2 lakh acres this season

Steps by govt: Reviewing water situation, exploring alternative cropping options, taking steps to boost production, and working to contain food price inflation

BBQ-ing THE BUDGET

Broiler live bird rate: Rs 130/kg in wholesale and Rs 144/kg in retail (August 4)

Dressed chicken: Rs 280/kg

Skinless chicken: Rs 320/kg

Boneless chicken: Rs 340/kg

Retail egg price: Rs 6.61 per egg on average; Rs 7.50–8 in several localities

Poultry feed cost: Soybean at around Rs 60/kg; maize at Rs 23/kg, pushing up production costs

Key drivers: Water scarcity, lower farm output, prolonged summer, heat-induced poultry losses and higher feed prices

Experts' prescription: Feed price stabilisation, scientific market monitoring, climate-resilient poultry farming, institutional procurement during downturns, export promotion and targeted support for poultry farmers