Premium non-basmati rice prices surge on low acreage, rain deficit
Premium non-basmati rice prices have risen 10–25% year-on-year as deficient monsoon rainfall and lower paddy acreage affect production prospects, particularly in southern India. Sona Masoori prices climbed 25% to ₹58/kg, while Swarna rose 10% to ₹35/kg. FCI holds 39 million tonnes of rice stocks.
Prices of premium non-basmati rice variants such as Sona Masoori, Ponni, and Swarna have increased by 10-25% compared to last year due to lower area under paddy and rainfall deficiency, especially in southern India.
In the southern region, the average market price of the widely consumed Sona Masoori variant has increased by 25% to Rs 58/kg from Rs 44/kg prevailed last year while the prices of Swarna boiled variant consumed in eastern region has increased by around 10% to Rs 35/kg, trade sources said.
“The main reasons for the price rise are weather-related supply concerns such as deficient monsoon in South India affecting water levels in dams and floods in parts of Bihar and lower rainfall in northern regions,” Suraj Agarwal, co-founder & CEO, Rice Villa, told FE. He said key factors in price movement in the coming months would be the prospects for rabi or winter crops.
While overall retail prices of rice according to the Department of Consumer Affairs have increased by 7% year-on-year to Rs 46.44/kg, the price rise for non-Basmati rice varieties has been rather significant in southern India, traders and exporters said.
Area under paddy has declined by 3.7% to 42.92 million hectares (Mha) in the current kharif season, compared to previous season. Impact of rising prices is rather sharp in southern India due to a nearly 26% deficiency in monsoon rainfall this season.
A major decrease in paddy area reported in states including Karnataka (0.46 Mha), Telangana (0.43 Mha), Andhra Pradesh (0.18 Mha), Tamil Nadu (0.15 Mha)
“The area under premium rice varieties such as Sona Masuri, Samba Masuri, RNR and Ponni has been impacted by deficient rainfall in Tamil Nadu, Karnataka, Andhra Pradesh and Telangana. Due to lower production prospects, prices have risen sharply ,” B V Krishna Rao, President, Rice Exporters Association, said.
Mandi arrivals of paddy ( basmati) have commenced, while prices are currently ruling at Rs 4000/quintal, 30% more than the corresponding period last year.
“The decline in mandi prices of Basmati rice is expected in the first week of October, when the bulk of arrivals will happen across mandis in Uttar Pradesh, Punjab and Haryana, as a clearer picture will emerge then regarding production and export prospects,” Ranjit Singh Jossan, CMD, Jossan Grains, Punjab, a leading Basmati exporter, said.
Rice production was estimated at a record 154.02 million tonne (MT) in 2025-26 season (July-June), of which the kharif output was 124.5 MT.
The Food Corporation of India (FCI) currently holds 39 million tonne (MT) of rice as strategic and buffer stock, against the buffer norm of 10.25 MT for October 1. This stock excludes 20.6 MT of rice receivable from millers.
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Source : The Financial Express
