Rice prices surge in Kerala as supply falls

THIRUVANANTHAPURAM: Rice prices have increased sharply in Kerala. The major reasons behind the price rise are the reduced supply from Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu, which are the main sources of rice for Kerala, and the fall in production due to lower rainfall. The availability of rice in Kerala has also declined due to increased exports to countries such as Sri Lanka and Australia. Prices of all varieties of rice have gone up. Government agencies suspect that there could be attempts to create an artificial shortage and increase prices.

Speculative trading and excessive stockpiling are also contributing to the shortage of rice in the market. The increase in transportation costs has further affected prices. Trucks carrying rice now charge around Rs 10,000 to Rs 20,000 more compared to earlier. Large quantities of rice are being exported from Odisha to foreign countries. This is reportedly due to the Central government's decision to remove restrictions and duties on rice exports. There are also complaints that the Centre's move to supply rice from the Food Corporation of India (FCI) to wholesale traders and agencies, including Supplyco, through e-auctions has been delayed.

Rice variety Old price New price
Andhra Jaya Rs 42 Rs 45
Karnataka Vadi Matta Rs 55 Rs 58
Karnataka Raw Rice Rs 34 Rs 39
Tamil Nadu Kuruvai Rs 34 —
Odisha Kuruvai Rs 34 Rs 40
Andhra Sulekha Rs 42 Rs 48
Telangana Sona Masoori Rs 45 Rs 63
Palakkadan Matta Rs 55 Rs 60
Ponni Rs 57 Rs 63
Kaima Rs 170 Rs 200
Basmati Rs 125 Rs 130

"If the current situation continues, rice prices will rise further."
-Arun Kumar,
Merchant