Fine rice prices rise to Rs 90 a kg in Hyderabad, may touch Rs 100
Fine rice prices in Hyderabad retail markets have risen to Rs.85-Rs.90 a kg ahead of Dasara Navaratri, with traders expecting them to touch Rs.100. Reduced paddy acreage, rising demand and procurement by traders from other States have tightened supplies.
Hyderabad: With Dasara Navaratri festive season commencing from Sunday, many households are already feeling the pinch as fine rice prices in retail markets have risen to Rs.85-Rs.90 a kg. Traders estimate that prices could touch Rs.100 a kg in the next few days.
In a span of 30 to 45 days, the price of a 25-kg bag of fine rice has increased by Rs.300 to Rs.500. Depending on the variety, a 25-kg bag of raw rice, which used to cost about Rs.1,500, is now being sold for Rs.1,900. Similarly, steam rice, which was priced at about Rs.1,600, is now being sold for Rs.2,100.
“This is just the beginning. One should not be surprised if the price of fine rice reaches Rs.100 a kg. We have no idea,” said a kirana store owner from Mothinagar.
Till two months ago, rice millers’ supervisors used to call traders to take orders for supplying stocks. Now, the situation has reversed, with traders reporting delayed supplies from millers amid rising demand.
Meanwhile, procurement by traders from other rice-consuming States has commenced. There is generally strong demand for fine rice cultivated in Telangana, particularly from the erstwhile Nizamabad, Nalgonda and Khammam districts.
Accordingly, traders from Karnataka, Tamil Nadu and Maharashtra have already started procuring paddy from farmers in different districts. This has also affected supplies to markets within the State.
Considering the paddy production this season, traders expect prices to rise further. During the Vanakalam season last year, paddy was cultivated on about 92 lakh acres. This year, the area has declined to 78.23 lakh acres.
Furthermore, the State government is holding stocks of fine rice varieties for supply under the Public Distribution System. Against this backdrop, traders expect prices to increase further during the Dasara and Deepavali festivals.
Admitting the steep price rise, the Rice Millers Association expects prices to stabilise in the days to come. “Once the Vanakalam season stocks arrive in the markets, prices should stabilise. However, considering the El Nino impact, nothing much can be said at this stage about Yasangi season paddy cultivation and production in the State. It all depends on stock arrivals in the next season,” said a member of the Rice Millers Association. eom
