Tamil Nadu rice prices rise 20% amid poor harvests

Rice prices in Tamil Nadu have increased by up to 20 percent over the past month, driven by poor paddy production and reduced supply from neighboring states including Andhra Pradesh, Telangana, and Karnataka. Popular fine varieties like Ponni rice have seen significant price hikes, with some premium varieties rising from Rs 65 to Rs 82 per kg.

The shortage is attributed to poor rainfall and a lack of water release from Karnataka for Delta irrigation. While traders express concern that prices may continue to climb due to losses in the kuruvai crop, the Tamil Nadu Rice Mill Owners Association suggests the market may stabilize if paddy arrivals improve in the coming months.

Despite prevailing El Nino conditions and drought in many parts of the state, the Tamil Nadu government has set a production target of 79 lakh metric tonnes of paddy for the 2026-27 period. The agriculture department plans to cultivate rice across 20 lakh hectares to achieve this goal, even as many canals and tanks have dried up due to high temperatures and lack of rain.