A factor contributing to the soaring prices is the export of rice to other states.

Express News Service

NALGONDA: Prices of rice in the state have shot up sharply, causing distress for common and middle-class families. The reduced yield, attributed to water scarcity in the Krishna basin, has led to a decrease in the area under paddy cultivation.

Various types of rice have seen a price hike ranging from 25% to 28% compared to the previous year. The average monthly increase in rice rates has been around Rs 200 to Rs 300 per quintal, with the price of BPT rice touching Rs 6,500.

A factor contributing to the soaring prices is the export of rice to other states. The reduced supply of rice in the market is aggravated by the lower quantity of paddy reaching mills. Last monsoon, 12 lakh metric tonnes (MT) reached mills and this year, it was reduced to  7 lakh MT.

In Nalgonda district, paddy cultivation faced a major setback, with only four lakh acres cultivated out of the targeted 10 lakh acres during the rainy season. The lack of water release from the Nagarjuna Sagar Project to the canals is cited as the main reason for a 48% to 50% reduction in cultivated areas this monsoon season.

District Rice Millers Association president Gouru Srinivas said that millers had to purchase rice from farmers at higher rates this year, ranging from Rs 3,500 to Rs 3,700 per quintal compared to the previous year’s Rs 2,000 to Rs 2,500 per quintal. This led to a 25 kg bag of old rice being sold at Rs 1,500 in the open market, an increase of Rs 250 to Rs 300. Additionally, some branded superfine rice is now being sold at Rs 65 per kg.

Published Date: January 3, 2024