The city of Tiruchi in Tamil Nadu is witnessing a steady surge in rice prices, primarily due to a dearth of paddy supply from critical cultivating regions. Key delta districts, from Tiruchi to Nagapattinam and Mayiladuthurai, which usually experience a flurry of paddy cultivation, are seeing a notable reduction. The primary reason for this decline is that farmers are choosing to forgo planting the second paddy crop for the samba season.

Fall in Paddy Cultivation

The decision to opt-out of planting the secondary crop is influenced by the failure of the northeast monsoon. This lack of rainfall has contributed to unfavorable conditions for cultivation, pushing farmers to abandon their sowing plans. The impact of this decision is being felt across the supply chain, with local rice mills, which rely on paddy from both within Tamil Nadu and Karnataka, struggling to operate at full capacity.

An Inevitable Price Hike

This supply gap has instigated a significant increase in the price of rice. Popular varieties such as Karnataka Ponni and Manachanallur Ponni are witnessing a 20% hike compared to the same period last year. Rice mill owners and traders are bracing for challenging times and anticipate that they will have to rely on paddy supplies from other states like Andhra Pradesh, Karnataka, and Telangana to meet the escalating demand for popular rice varieties.

Facing the Future

This shortage and growing dependence on external supply sources may further exacerbate the situation, potentially driving prices even higher in the future. As the city and its people brace for a potential inflationary impact, the anticipation of the next samba season in 2024-25 brings a glimmer of hope for a return to normalcy in the rice market.

Published Date: January 1, 2024