Rapid rise in rice price, makes meals burning hot

CHENNAI: The distress that farmers had to live through a few months ago has come closer home for Chennaiites, with the households in the city bearing the effect in the form of increasing price of rice, the staple food here. The shortage has sent rice price up by around Rs 17 per kilo in the last four months, and may go up further if the demand-supply gap is not bridged.

The prices of various rice varieties have been going up in the last four-five months, said R Punniappan, secretary, Koyambedu Food and Grains Wholesale Market, blaming it on the shortage of arrival due to deficit rainfall during last crop season and low yield. He also cited rice exports as another reason for the shortage and the resultant price surge.

“The price of parboiled rice now ranges from Rs 60 to Rs 68 per kg, while that of branded rice varieties increased by Rs 10 per kg when compared to the last year,” he said.

Echoing him, Arupathy P Kalyanam, general secretary, Federation for Farmers Associations of Cauvery and Delta Districts, said due to poor monsoon, a field that once had 1,800 to 2,100 kg yield now produces less than 1,500 kg in the first and second crop. “Climate change also plays a role in reducing the yield,” he said.

Hike in rice price adds nearly Rs 10,000 more in common man’s yearly budget

Retail stores in the city are selling rice at an abnormal rate. For instance, Sivaji brand rice is sold for Rs 68/kg, whereas in retail it’s priced at Rs 80/kg. There is a drastic price difference between wholesale and retail prices in rice varieties. Retailers also hike the price and making it costlier for the public. Paddy is now supplied from Karnataka, Andhra and Chhattisgarh due to low yield and this is the major reason for the price hike,” said R Punniappan, secretary, Koyambedu Food and Grains Wholesale Market.

Fewer customers buy in smaller quantities due to the steep increase in the rice prices. “Demand for paddy increased in TN, which led to a price hike. In the last four months, prices increased by Rs 15-17/kg. For instance, a kilo of RMR rice brand surged from Rs 50 to Rs 60-65, and a 26-kg bag, which sold for Rs 1,100, now costs Rs 1,750- 1,800. Sales have been dull for a while and there is no huge demand for rice except from a certain group of people,” said Arunkumar, a retailer in Triplicane.

Surge in prices of essential items, especially rice, chillies and garlic, has hit consumers hard, as it adversely impacts their monthly budget. R Shanthi, a resident of Mannady, bought a 26-kg rice bag for Rs 1,450 in December, whereas this month it costs Rs 1,650. “As a five-member family, we have to buy at least 6-7 rice bags a year – that’s around Rs 10,000 for rice alone. That’s expensive. We don’t want ration rice due to the quality, but if the price doesn’t dip, we would have to buy ration rice only. We cannot afford to spend over Rs 10,000 for rice,” rued Shanthi.

Since the TN Civil Supply began procurement later than usual, the private rice brand owners bought 30-40% more paddy at higher rates. Brands like Andhra Ponni and Sadhana (hybrid variety) sell as per the price fixed by the government. Usually, they would buy for Rs 1,250 from the cultivation centres, whereas now it costs Rs 1,450-1,500

Union govt’s Bharat rice sold at Rs 29/kg

The Union government launched Bharat rice that’s sold at Rs 29/kg through co-operatives as the retail price of rice has surged by 15% in the last one year in the country. It’s available in 5 kg and 10 kg packs. In the first phase, the Food Corporation of India (FCI) will provide 5 tonnes of rice to National Agricultural Cooperative Marketing Federation of India limited and National Cooperative Consumers Federation of India, also to the retail chain, Kendriya Bhandar.