Rice prices surge in Tiruchi as drought and supply shortages hit paddy arrivals

Rice prices have risen sharply in Tiruchi in recent weeks, driven by reduced paddy supplies from key producing regions and a prevailing drought in Tamil Nadu and Karnataka, according to market sources.

Tiruchi, home to numerous rice mills in Manachanallur, Ariyamangalam and Kattur, typically sources paddy from the Cauvery delta districts of Thanjavur, Tiruvarur and Nagapattinam, as well as from Karnataka, Andhra Pradesh and Telangana. However, arrivals from these areas have declined significantly since April-May, traders said.

One bag (26 kg) of Atchaya Ponni, commonly known as Karnataka Ponni, was sold at ₹1,700 in the wholesale market on Friday, up from ₹1,500 in May. In retail, the variety now costs ₹70-75 per kg, an increase of ₹10-15 per kg since May.

The premium Seeraga Samba variety has seen an even steeper rise, with prices ranging from ₹160 to ₹200 per kg, compared to ₹120-150 in May. Tulasi, another fine variety, has gone up by ₹10-15 per kg, while common variety rice has also risen by a similar amount over three months.

“The price of one bag of paddy (63 kg) has gone up to ₹2,100 from ₹1,450 since January — an increase of ₹650 per bag, which is unprecedented,” said T. Suresh of Bala Boiler Modern Rice Mill in Tiruchi. He noted that large farmers are holding back stocks, expecting further price increases.

Compounding the issue, drought conditions in Tamil Nadu and Karnataka have reduced the area under kuruvai (short-duration) paddy cultivation this year, raising concerns about the upcoming samba crop. “It might increase prices of rice further,” said S. Baskar of M. R. Rice Mandi in Tiruchi.

Millers report that Tiruchi usually receives steady paddy supplies from Karnataka during November-December and April-May, but hardly any arrived from that state during the last two seasons, widening the gap between demand and supply.