Rice prices likely to fall in Tamil Nadu due to fall in paddy prices

21-Jan-2025 01:33 PM

The price of rice in Tamil Nadu is expected to decrease by about 10% in the coming weeks due to a significant drop in paddy prices. Currently, fine variety rice is priced at 60-70 rupees per kg.

The decrease in paddy prices by 200-300 rupees per 62 kg bag is driven by an anticipated bumper harvest in the state this year.

As a result, the price of RNR category rice in markets like Ramanathapuram has fallen from 1700-2000 rupees per bag to 1300-1400 rupees per bag.

This price reduction in paddy is expected to lead to a decrease in the retail price of rice, which could drop by Rs 2-3 per kg initially, with further reductions possible later.

Despite a 3.5% decline in rice production in the 2023-24 season, Tamil Nadu is anticipating a strong production in the 2024-25 season, which will help ease supply and availability.

Paddy is a major crop in Tamil Nadu, and the state has seen strong rice exports due to its high-quality production.

The expected good harvest in 2024-25 will likely further enhance both domestic and foreign rice supply, contributing to lower rice prices.