- Tamil Nadu rice prices surged, premium varieties saw sharpest increases.
- Government procurement, rising input costs reduced private rice supply.
- Industry expects improved supplies post-January, seeks GST removal.
Rice prices across Tamil Nadu have come under pressure as higher paddy procurement rates, rising input costs and reduced availability for private buyers push up market rates. Premium varieties have seen the sharpest increases, with a 26-kg bag of superfine rice now costing Rs 1,950, up Rs 230 over the past 10 days.
A similar bag of fine rice is selling at Rs 1,640, compared with Rs 1,500 earlier. Industry representatives, however, have ruled out a shortage in the state and expect supplies to improve after the Samba harvest ends in January.
Paddy Procurement Hits 64.2 Lakh Tonnes
The increase in government procurement has affected the quantity of paddy available to private buyers. During the 2025-26 season, government procurement rose to a record 64.2 lakh metric tonnes, compared with 47.98 lakh metric tonnes in 2024-25.
Higher procurement prices encouraged more farmers to sell their produce through direct procurement centres. From September 1, the procurement rate was raised to Rs 2,750 per quintal for fine paddy and Rs 2,600 for common varieties.
The reduced availability for private buyers has coincided with higher fertiliser and fuel costs, as well as a shortage of agricultural labour, adding to the overall cost of production.
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Why Rice Prices Are Rising In Tamil Nadu
The recent rise has been steeper than the usual seasonal increase seen between October and December. Common rice varieties typically become costlier by Rs 50 to Rs 90 per bag during this period, as markets move between the Kuruvai harvest and the arrival of the Samba crop.
This time, premium varieties have recorded larger gains. A 26-kg bag of superfine rice has increased from Rs 1,720 to Rs 1,950, while fine rice has risen from Rs 1,500 to Rs 1,640.
Similar trends have been reported in Madurai, Thanjavur and Tiruchy. Superfine paddy is currently priced at around Rs 45 per kg, while rice sells for approximately Rs 75 per kg. In Thanjavur, a 26-kg bag of Ponni rice has become costlier by Rs 300.
Will Rice Prices Reach Rs 100 Per Kg By January?
Growing consumption of fine rice in Chennai, Madurai, Coimbatore and other cities has added to demand at a time when private-market supplies are under pressure.
Tamil Nadu requires around 91 lakh metric tonnes of rice every year. Local production accounts for 70 lakh to 75 lakh tonnes, with the state sourcing the remainder from other states.
Despite the recent price increases, industry representatives say there is no rice shortage in Tamil Nadu. They have also dismissed projections that prices could reach Rs 100 per kg by December or January.
Supplies are expected to improve after the Samba harvest concludes in January, although the report does not specify how much prices could ease thereafter.
Rice Industry Seeks Removal Of 5% GST
The industry has also called for the withdrawal of the 5 per cent GST on prepacked and prelabelled rice bags weighing up to 25 kg.
For consumers, the immediate pressure is most visible in premium varieties, while the broader market continues to follow its usual seasonal pattern. The expected arrival of the Samba crop could improve availability in the coming months, according to industry representatives.
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Input By : IANS
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: abplive.com
