Deepa H. Ramakrishnan.

With the prices of paddy going down this year as compared to last year, rice millers say this will augur well for consumers.

“Wholesale rice prices should go down by ₹3-4 per kilo by February when the milled rice reaches the markets. This should also reflect in retail prices where the decrease would most likely be by ₹1–2 per kilo,” said A.C. Mohan, secretary, Federation of Tamil Nadu Rice Mill Owners and Paddy Rice Dealers’ Association.  

At the Redhills rice market, a 60-kg bag of paddy is now priced at ₹1,400–₹1,500, which translates to ₹23/kg. The market, these days, is crowded with trucks laden with loads of paddy from Andhra Pradesh, Karnataka and Telangana.  

“Last year in January, 60-kg paddy bags were priced at ₹1700–1800 due to rise in demand. The Ukraine war resulted in the increase in export of fine non-Basmati rice and reduction in rice production in the country by 3.7% in 2023. Some rice-producing States also faced droughts. To rein in prices and ensure the availability of rice in the country, the Central government had to impose and increase the customs duty on rice,” Dr. Mohan said.

President of the Federation D. Thulasingam said the prices were moderate this year, thanks to the Monsoons doing well in 2024 and rice exports normalising. “According to statistics provided by the Union Agriculture Ministry, farmers in many States will produce a bumper crop. Even if farmers in Cuddalore and some parts of the Delta region took a hit, the paddy from other districts and the rest of the country will help in meeting the rice demand of the State,” he said. 

Underscoring the long-pending demands of the Association, Mr. Thulasingam asked the Centre to remove GST on rice bags below 25 kg. “The common man buys in small quantities. The FSSAI has been telling us to pack all products. The Finance Minister tells us that GST will not be charged for unpacked rice. We don’t know whom to listen to. If the GST is removed, it would help the cause of the common man, who is already bogged down by the prices of other essentials, he said, adding that the State government could reduce the basic charge that had been hiked from ₹35/unit to ₹150/unit. 

Published Date: January 21, 2025