Sharp hike in rice prices in India

Deepa H Ramakrishnan

Rice prices, which have been on the increase over the past few months, saw a sharp hike this week in the retail and wholesale markets in the city, The Hindu reported.

The Hindu report from Chennai: In retail, the best quality rice is being sold anywhere between Indian Rs.25 (SL Rs 63) and Rs.30 (SL Rs.76) a kg. In Mylapore, the Ponni raw rice that was sold at Rs.24 (SL Rs.61) a kg last week is now priced at Rs.26 (SL Rs.66) and in Thoraipakkam the same rice variety which was Rs.22 (Rs.56) a kg is now Rs.25.

“Rice suppliers say that there is little chance of the price coming down. Raw rice that was sold for Rs.22 a kg last week is now sold at Rs.25 and the price of Karnataka Ponni has increased by a rupee,” said Elumalai, a shopkeeper in Chintadripet.

Chennai sources most of its required raw rice from Andhra Pradesh, while boiled rice comes from Karnataka. It also gets supply from some other districts of Tamil Nadu. Wholesale traders say there has been an increase in the price of rice from Andhra Pradesh and Karnataka.

In the wholesale market, `Sona Ponni’ steamed rice from Karnataka, which was Rs.18 a kg, is being sold at Rs.22 per kg. “When dealers find it difficult to invest additional capital, they purchase less quantity. At prevailing rates we have to pay around Rs 200,000 more per lorry load. Since we cannot afford that, we have cut down our purchases by half,” said a leading wholesale dealer in raw rice in north Chennai who procures from Andhra Pradesh.

Wholesale rice dealers are also worried about the government move to introduce a stock ceiling on rice and hence afraid of building stocks. “Many dealers are selling their stocks. There has also been a decrease in rice arrivals from the two States,” said R. Subramanian of Master Modulation Rice Mills in Redhills.

However, D. Thulasingam, president, Federation of Tamil Nadu Rice Mill Owners and Paddy Rice Dealers Association, said the increase in the cost of rice was negligible when compared to that of oil and pulses.

“Inflation, increasing fuel prices, lesser land coverage under crops and the cost of production of agricultural products are only adding to the cost of rice. There is plenty of rice available in the Gingee and South Arcot committee markets. The price would come down, once the harvested rice comes in by September,” he said.