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Tiruchi Rice Mills Reel Under Paddy Scarcity, Surging Prices

Published on: 06 Aug 2026, 02:19 PM
Tiruchi Rice Mills Reel Under Paddy Scarcity, Surging Prices

Rice mills in Tiruchi district of Tamil Nadu are facing a severe crisis due to a short supply of paddy from major production centres, leading to soaring prices and reduced employment in the sector. The disruption has affected over 120 mills located in areas such as Manachanallur, Ariyamangalam, Kattur, and Manapparai, with Manachanallur housing the highest number of mills.

The mills rely heavily on paddy from the Cauvery delta districts of Thanjavur, Tiruvarur, and Nagapattinam, as well as from Karnataka, Andhra Pradesh, and Telangana. While some millers procure fine-quality paddy directly from local farmers in Manachanallur and other parts of Tamil Nadu and Karnataka, the steady supply that was once available has now become erratic. After the boiling, drying, and hulling processes, the rice is sent to markets, often marketed as Manachanallur ponni or under private brands.

The sector is a significant source of livelihood in the district, providing direct employment to about 2,000 people and indirect employment to many more. However, the current shortage has forced many mills to operate only three to four days a week, leaving workers without income for the remaining days. Industry sources say that except for a few large players who had stocked up during harvest seasons, most mills are struggling to sustain regular operations.

According to traders, the supply from the delta region has been negligible in the last few months. Traditionally, Tiruchi received steady paddy supplies from Karnataka during November-December and April-May seasons. However, millers report that they have received almost nothing from Karnataka in the last two seasons, creating a significant gap between demand and supply. This has been compounded by farmers withholding their produce, anticipating further price increases.

T. Suresh of Bala Boiler Modern Rice Mill said that the price of a 63 kg bag of paddy has risen from ₹1,450 to ₹2,100 since January. Farmers who had stocked up are reluctant to sell, expecting prices to climb further. This has made it impossible for mills to operate at optimal capacity. Another mill owner from Manachanallur noted that the overall area under paddy cultivation in the kuruvai season has declined, and there are doubts about the samba season as well. Erratic monsoon conditions also make it unlikely that Karnataka will supply paddy in the near future, which could ultimately lead to higher prices for rice varieties in the market.

The situation is a matter of concern not only for mill owners but also for consumers, as rising paddy costs are expected to translate into increased retail rice prices. With no immediate relief in sight, the district's rice milling industry faces an uncertain period ahead.

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