Rice prices in TN up by Rs 15/kg due to supply crunch
Tamil Nadu rice prices have risen ₹5–15 per kg due to shortages of fine-quality paddy from Andhra Pradesh, Telangana and Karnataka, lower cultivation, weak irrigation and export demand. Traders warned supplies may tighten further, while farmers urged increased cultivation of premium paddy varieties within the state.
TIRUCHY: Rice prices in Tamil Nadu have experienced a sharp upward surge over the past few weeks, climbing by Rs 5 to Rs 15 per kg. This sudden spike is primarily driven by shortage of supply of fine-quality paddy varieties, most notably Bapatla Ponni and Karnataka Ponni, from Andhra Pradesh, Telangana and Karnataka.
While traders attribute the hike to reduced cultivation, poor irrigation, export demand and lower arrivals, farmers demanded measures to boost local cultivation of fine-quality paddy varieties to cater to the needs of people in Tamil Nadu.
Most of the paddy procured in delta districts by the Tamil Nadu Civil Supplies Corporation (TNCSC) for Food Corporation of India (FCI) are meant for ration supply. For open market sales, the traders depend on paddy and rice from neighbouring states, sources said.
For instance, Rajesh R (39), who runs a rice shop in Tiruvottiyur, told TNIE that prices of several varieties of low-grade rice have increased by Rs 10 to Rs 15 per kg over the past month.
“Most of the increase has been in boiled rice varieties such as Deluxe rice and RNR rice. Earlier, these varieties were sold at Rs 1,100 to Rs 1,250 per 25-kg bag, but the price has now gone up to around Rs 1,500 (20% jump). In contrast, premium varieties such as HMT, Kollam and Amman Sona have so far not witnessed a significant increase. The retail price of boiled rice, which earlier started at around Rs 50 per kg, now starts at `60,” he said.
Rajesh said they usually procure rice from wholesalers in Red Hills, where stocks arrive from Andhra Pradesh and Karnataka. However, lower crop yields in these states have affected supply.
Rice prices have increased twice in July: Retail trader
Even traders from Arani (a traditional rice growing area) are coming to Red Hills and buying rice with cash payments, making it difficult for us to get stocks,” he added. Another rice trader said prices of idli rice has also gone up. Though there was no increase in rice prices until June despite the increase in transportation costs due to fuel price hike, prices have increased twice in July, said S Dhandayuthapani, a retail rice vendor from Ranga Nagar in Tiruchy.
“The prices of all varieties including fine-quality or common varieties-have increased by Rs 150 to Rs 200 per 26-kg bag,” he said. P Raguraman, a rice mill owner from Tiruchy, said he was unable to procure the required quantity of Andhra Ponni paddy from Andhra Pradesh despite travelling there, citing a shortage in supply due to cultivation area decline.
A grocery shop owner from Madipakkam said the prices of parboiled rice have increased by Rs 30 to Rs 100 per 25-kg bag over the past few days. “Premium varieties such as Ponni parboiled rice have seen steeper hikes of up to Rs 100 per 25-kg bag,” he said.
“The Karnataka government has asked the farmers of a particular region to not take up cultivation during a sowing season last year (2025) as maintenance work was taken up at Tungabhadra reservoir. This led to the drastic fall in the availability of paddy in the market leading to price rice,” says B Palraj, president of Thanjavur Paddy and Rice traders association.
The permission by the union government to export non-basmati rice and deficient southwest monsoon rains have added to the problem, he said. The situation may further worsen as traders in Karnataka and Andhra are not taking orders for the last one week, he said. A Anbarasan, chairperson of the Food Panel of MADITSSIA, attributed the decline to crop failure caused by lack of water in the two states.
Meanwhile, M Chinnaswami, Tiruchy District President of the Tamil Nadu Rice Mill Owners Association, said the recent increase in rice prices was not unusual. He noted that rice prices typically witness a marginal rise during the Tamil month of Aadi (mid-July to mid-August).
“The failure of the Kuruvai crop this season due to water shortage may have an impact only in the coming months. However, citing the Kuruvai crop failure, there is a possibility attempt to create an artificial shortage,” he claimed.
Vayalur N Rajendran, State Treasurer of the Farmers’ Wing of the Tamil Maanila Congress from Tiruchy, said the cultivation of fine-quality paddy varieties such as Vellai Ponni (grown in earlier years), BPT 5204 (Andhra Ponni), ADT 43, and ADT 54 is limited in Tamil Nadu.
Speaking to TNIE, a consumer protection department official said the department will not intervene in market fluctuations of price of rice. “However, if the price increases abnormally, we will look into it,” he said.
Ponni rice bears brunt
Price spike is primarily driven by shortage of supply of fine-quality paddy varieties, most notably Bapatla Ponni and Karnataka Ponni, from Andhra Pradesh, Telangana and Karnataka.
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Source : The New Indian Express
