The prices of key fine paddy types in Tamil Nadu have sharply increased as the Samba and late cultivation season nears its end, causing concerns among traders, millers, and consumers about grain quality. Akshaya Ponni, a highly sought-after variety, has hit record prices, ranging from Rs 37 to Rs 42 per kilogram in wholesale markets. Other popular varieties like RNR and Sree are trading at approximately Rs 37 to Rs 38 per kilogram.
The price surge is mainly due to reduced arrivals as the marketing season reaches its final stages. With fresh stocks becoming scarce, paddy transactions are occurring gradually. This scarcity has also led to higher retail prices for fine and superfine rice varieties, currently priced at over Rs 60 to Rs 70 per kilogram in various markets.
The spike in prices is particularly notable for Akshaya Ponni and Sree varieties, driven by strong consumer demand and limited availability. Market experts estimate a more than 20% increase in paddy prices compared to normal levels. Additionally, prices of by-products like husk and bran have also seen a moderate rise, contributing to overall market dynamics.
Industry observers highlight Tamil Nadu’s heavy reliance on neighboring states, especially Karnataka, for fine paddy supply. A significant portion of the state’s demand is met externally, exposing local markets to production and supply fluctuations in other regions.
Poor rainfall and disruptions in the Tungabhadra dam area in Karnataka have reportedly impacted paddy cultivation this year, leading to reduced supplies to Tamil Nadu. This situation has heightened demand pressures and driven prices up. Akshaya Ponni, in particular, has witnessed a substantial price hike, climbing from around Rs 36 to nearly Rs 42 per kilogram. Market stakeholders are optimistic that adequate rainfall in catchment areas and expanded cultivation in the upcoming season could improve the scenario.
Agricultural trade bodies emphasize the importance of promoting the cultivation of high-demand fine paddy varieties to reduce reliance on neighboring states, enhance supply stability, and mitigate future price fluctuations.
