Rice prices are likely to come down

A surplus of rice supply from the neighbouring states of Maharashtra and Karnataka has forced rice millers to cut down rice price in the state. The prices of all varieties of rice are falling in the open market, providing much needed relief to consumers.

Fine varieties such as Sona Masuri and Nellore Sannalu are available between Rs 30-Rs 34 per kilo. Other varieties like Swarna and 1001 are available ranging from Rs 22 to Rs 24 in the city markets.

The prices are likely to come down further with the arrival of new crop of kharif season. As per government estimates, the state received 75.88 lakh tonnes of rice in the kharif season. The agriculture ministry had initially feared that the production would not cross even 65 lakh tonnes due to floods and droughts in the state.

The production of rice, however, exceeded expectations, paving the way for a drop in prices.

The civil supplies department, which lifted the ban on transportation of fine varieties within the state, says A-grade quality rice will be available even below Rs 30 per kilo, due to a check on black marketing. However, the production of fine varieties is only three lakh tonnes as against four lakh tonnes last year.

“The prices are likely to be stabilised further as consumers are shifting to other varieties instead of the fine type,” said the civil supplies commissioner, Mr Sanjay Jaju. “There are no buyers in the market even though millers are ready to sell rice at lower rates compared to last year. The prices are likely to be stabilised with the import of rice from other states too,” said the president of Rice Millers’ Association of Nalgonda district, Mr G. Nagendra.