Andhra Pradesh : Rice Prices Rise As Paddy Costs Increase
Retail rice prices in Andhra Pradesh have risen ₹200–300 per 26-kg bag due to higher paddy prices driven by reduced supplies and stronger demand. Lower superfine paddy production, Telangana’s ₹500/quintal bonus, and growing superfine rice consumption have tightened availability and lifted market prices.
KAKINADA: Retail prices of both superfine and common rice varieties have increased by ₹200 to ₹300 per 26-kg bag in the domestic market in recent weeks, according to trade sources.
Traders attributed the increase to rising paddy prices caused by lower supplies and higher demand.
Sources said rice millers in the Godavari districts usually procure superfine paddy from Bihar, Madhya Pradesh, Odisha and Chhattisgarh. However, cultivation of superfine paddy has reportedly declined in these states, reducing supplies. They also said the Telangana government is offering a bonus of ₹500 per quintal to paddy farmers, resulting in increased procurement and attracting paddy from Andhra Pradesh, thereby reducing local availability.
Kakinada Rice Millers Association president Valluri Srinivasa Rao (Suribabu) said rice prices had risen in line with higher paddy prices driven by supply shortages and increased demand. He added that consumption of superfine rice has been increasing in both urban and rural areas.
Sources said the state government supplies common rice through the Public Distribution System (PDS), but some beneficiaries sell the rice to traders and purchase superfine varieties from the open market. They added that the government has introduced superfine rice in residential schools and for the mid-day meal scheme.
According to sources, the government is considering supplying steam rice through the PDS. They said such a move could reduce the resale of ration rice and help moderate open market prices.
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Source : Deccan Chronicle
