Pavan Kumar

Traders and farmers blame poor monsoon conditions, delayed water release and rising export demand for the price spike.

Rice prices in the retail market have surged rapidly and are all set to breach Rs 100 per kg.

Traders and mill owners attribute the spike to poor rainfall and the non-release or late release of water for paddy cultivation in the Krishna-Tungabhadra and Cauvery basins.

Traders said that this would be the first time that the price of rice could cross this threshold. In the last two months, the retail price of Sona Masoori, one of the most widely consumed rice varieties in Karnataka, has risen by Rs 20 per kg.

Currently, seasoned Sona Masoori is sold between Rs 82 and Rs 98 per kg, jeera rice costs between Rs 90 and Rs 115 per kg and bullet rice is around Rs 95 per kg. Almost all commercially important varieties have witnessed a price rise of Rs 20 to Rs 30 per kg.

Data from the Union government’s Department of Consumer Affairs (Price Monitoring Division) show that Karnataka has recorded the steepest increase in retail rice prices in the country over the past four months.

The price of rice rose from Rs 52.11 per kg in June to Rs 67.86 in October, marking an increase of about 30%.

Sources in the Agriculture Department told DH that paddy arrivals during the Kharif season is down by 10% to 40% in different markets compared to last year.

Furthermore, there may be no second crop. Experts said that continued rice exports could also push prices further up.

“Last Kharif season, we purchased paddy for anywhere between Rs 1,800 and Rs 2,700 per 75-kg bag. However, this year, the same quantity costs Rs 3,400 to Rs 4,000. Even if we are willing to buy at these high prices, there is no paddy available in the state,” said Savitri Purushottam, executive president of the Karnataka State Rice Mill Association.

“In my 56 years as a miller, I have never seen paddy prices rise by Rs 2,000 per quintal in two months. With the government deciding not to release Tungabhadra water for the second crop, the price of rice is expected to cross Rs 10,000 per quintal,” he said.

Vijay, a farmer in Gangavathi, said the majority of farmers had not benefited from the price rise as they had agreed to sell their produce for a lower price before the commencement of the season. He said only a small group of farmers sold their produce for Rs 3,300 per quintal, while most had sold it for an average of Rs 2,600 per quintal.

While the target for sowing paddy in the kharif season for the state was 10 lakh ha, sowing was taken up only in 4.87 lakh ha.

An Agriculture Department officer in Koppal said that because of late release of water, the total yield in the region would be 10% below normal.

Savitri Purushottam rejected allegations of hoarding and said that the lack of paddy availability was not a Karnataka-specific problem but a pan-India issue.

A Raichur-based trader said the impact of El Niño had increased demand for Indian rice across the world. “We are receiving requests from Gulf nations, Singapore and some African countries. We have run out of seasoned rice and are waiting for fresh stocks. We are not committing ourselves to them,” he said.

Union Minister for Consumer Affairs, Food and Public Distribution Pralhad Joshi said there was no shortage of rice in India.

“The Food Corporation of India (FCI) has stocked enough rice to meet the country’s requirements for the next 18 to 20 months. Under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), the government is providing free foodgrains to more than 81.35 crore eligible beneficiaries. The Union government is willing to provide additional rice to any state at subsidised rates.

“State governments must monitor why rice prices are rising and take corrective measures. Exports alone are not responsible for the price rise. Drought conditions across India and other rice-growing countries are increasing global demand for rice,” he said.

Published Date: October 28, 2026