Sana Rice Prices Jump Sharply in Four Months Across Telangana

Prices of fine rice varieties in Telangana have shot up significantly over the past four months, rising by up to 25 percent. Fine rice that cost between 50 and 55 rupees per kilo four months ago now sells between 65 and 83 rupees. Even lower quality fine rice now costs more than 60 rupees a kilo, while broken rice prices have jumped from 20 rupees to 30 rupees a kilo.

Main Causes

El Nino has badly hit paddy yields during the monsoon season, while a drop in the summer crop area from 92.17 lakh acres last year to 78.23 lakh acres this year has added to the worries. Traders from neighboring states like Karnataka, Maharashtra, and Andhra Pradesh are buying raw paddy directly from fields in districts like Nizamabad, Nalgonda, and Khammam as soon as harvesting begins. They are moving huge stocks to big cities like Bengaluru, Mumbai, and Chennai, which leaves less rice available within the state. Illegal hoarding by traders and stricter payment rules by rice millers, who now demand cash upfront instead of giving a two-month credit window, are pushing retail prices up even further.

Official Irregularities

Excess procurement of paddy by the Civil Supplies Corporation during the last kharif season, which left 5 lakh tonnes as a surplus, also reduced market availability. Meanwhile, recent checks by vigilance and enforcement teams uncovered that paddy worth about 2,000 crore rupees went missing due to custom milling irregularities and illegal recycling by some millers.

Current Market Rates

Sunday market rates for popular 25-kilogram bags show average per-kilo prices at 83.50 rupees for JSR Premium Kolam, 74.85 rupees for JSR Raw Rice, 71.33 rupees for Lalitha Sonalmasoori, 70 rupees for Kurnool Sonalmasoori, and 69 rupees for HMT Raw Rice. Grocery shops are selling HMT Raw Rice at 78 rupees per kilo, up from 70 rupees just a fortnight ago.

Context

Food price inflation is closely tied to seasonal weather patterns, agricultural output, and supply chain management across different states. When farm yields drop and interstate buying increases, local markets often face sudden shortages and sharp price spikes for daily food items like rice.