Visakhapatnam: Increase in prices of essential commodities may pinch the pockets of consumers this Sankranti festival (the biggest festival in Andhra Pradesh). Prices of rice, pulses, vegetables, fruits, jaggery and a few others are remaining firm for the past few months. The prices of rice may further increase in the coming days.

Traders attribute price rise to stockpiling by rice millers in anticipation of high profits as the recent extreme weather conditions damaged crop in many parts of the country.

The Sona variety (HMT Sannalu) of rice is selling at a record 1,680 per 26 kg bag against 1,450 around two months ago. Traders said the price of the premium rice is most likely to touch 1,800 per bag during Sankranti festival.

The prices of both basmati and non-basmati rice increased by 15 to 20 per cent in the past two months following a surge in demand and low production. The best quality basmati rice variety is selling at a record price of 140 per kg as compared to 110 per kg around two months ago.

HMT Sannalu, BPT Sannalu and a few other most popular varieties of rice will be further expensive as the millers have been creating artificial shortage claiming low production and high demand, said N Vijay, a rice trader in Vizag city.

The market dynamics are always driven by demand and supply. “Due to limited supply of fine rice, particularly after the recent poor kharif season in Andhra Pradesh, prices have risen. Additionally, AP is experiencing greater demand for finer rice compared to its locally cultivated varieties, which may also be contributing to the price Increase,” said A Rama Krishna Reddy, former president of Andhra Pradesh Rice Millers Association.

Not only the price of rice but also pulses has gone up. For instance, the price of best quality red-gram (tur dal, most widely used staple food in the state) is in the range of 180 to 200 per kg. The jaggery price is over 80 per kg and branded edible oil costs 120 per litre. The rising prices of essential commodities are cutting into our pockets whereas our income remains same, said L Ravi Teja, an employee with a private firm in Vizag city.

Traders said prices of pulses are likely to fall from next month with harvest of tur and urad. Imports, including that of yellow peas, will also boost domestic supplies.

It seems that the only millers and traders are getting profits by selling rice and pulses whereas farmers and consumers remain victims in the price game. The farmers never get good prices for their produce (paddy and pulses) but the millers are getting huge profits, sald leaders and activists of Left parties.

Published Date: January 7, 2024