Urban demand, supply shortfalls and higher MSP push rice prices up in Tamil Nadu
Rice prices in Tamil Nadu rose ₹140–230 per 26-kg bag over 10 days amid reduced supplies from other states, higher MSPs and rising input costs. Super-fine rice reached ₹1,950 per bag, while industry representatives expect prices to stabilise after the Samba harvest ends in January.
Chennai: Due to a shortfall in rice supplies from other states and increased consumption of fine and super-fine varieties in urban areas, rice prices, particularly those of fine and super-fine varieties, have increased by Rs 140 to Rs 230 (Rs 6 to Rs 9 per kg) for a 26-kg bag over the past 10 days.
The price of a 26-kg bag of super-fine rice has recently increased from Rs 1,720 to Rs 1,950, while the price of fine variety rice rose from Rs 1,500 to Rs 1,640. Prices of common varieties, which usually rise by Rs 50 to Rs 90 ( Rs 2-Rs 3/kg) between October and December every year, have also increased during the period.
Industry sources said a marginal rise in rice prices was common during the non-seasonal period between September and November, after Kuruvai harvest and before the starting of Samba harvest. However, the recent rise in prices of fine and super-fine varieties has been slightly higher.
They attributed the increase to several factors, including the rise in the minimum support price (MSP) from September 1 to Rs 2,750 per quintal for fine varieties and Rs 2,600 for common varieties; increased consumption of fine rice varieties, particularly in Chennai, Madurai, Coimbatore and other urban areas; higher fertiliser and fuel costs; a shortage of unskilled labour in the state; and reduced supplies from other states.
P C Natesan, Tiruchy district secretary of the TN Rice Mill Owners Association, said that compared to previous years, a large section of farmers had sold their paddy at DPCs during 2025-26 due to higher MSP. “So, most farmers have no stock left to sell,” he said.
Total paddy procurement reached an all-time high of 64.2 lakh MT during the 2025-26 season, compared with 47.98 lakh metric tonnes in 2024-25. Dr A C Mohan, secretary of the Federation of TN Rice Mill Owners and Paddy-Rice Dealers Association, said, “When the MSP rises to Rs 2,750/quintal for fine varieties, selling prices will naturally go up. Currently, prices have stabilised and there may not be any major rise after the Samba harvest ends in January.”
Mohan said speculation about a rice scarcity in TN was baseless and dismissed reports that prices would touch Rs 100/kg before December or January. He said the 5% GST imposed on pre-packed and pre-labelled rice bags weighing up to 25 kg was contributing to the rise in prices and should be revoked.
TN’s annual requirement is around 91 lakh MT of rice, of which 70 to 75 lakh MT is produced within the state. The remaining is sourced from other states.
The situation is no different in Madurai, Thanjavur and Tiruchy. Prices of super-fine paddy have risen from Rs 30-35/kg to Rs 45. Consequently, rice prices have increased from Rs 60-65 per kg to around Rs 75 per kg. “The price of Ponni rice has increased by Rs 300 per 26-kg bag,” said B Palraj of Thanjavur Paddy and Rice Traders Association.
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Source : The New Indian Express
