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Tamil Nadu implements rice subsidies amid high inflation

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2026-10-16 15:34 UTC → 2026-10-27 04:46 UTC · added ~~removed~~

Tamil Nadu has recorded the highest inflation rate among Indian states at 6.81% for September, with food inflation specifically reaching 10.62%. Significant price surges were noted in commodities such as onions, garlic, and lemons, despite decreases in the cost of items like potatoes and tomatoes. To combat rising costs for staples, the state government has moved forward with market intervention measures. Food and Civil Supplies Minister P. Venkataramanan announced that fine-variety rice will be sold at a subsidized rate of Rs 30 per kilogram through Amudham and cooperative stores, addressing open market prices that have climbed to between Rs 75 and Rs 85 per kg. The government intends to distribute an initial 25,000 metric tonnes of Grade A rice and plans to supply tur dal at Rs 130 per kg while maintaining onion prices at Rs 35 per kg. These economic measures have drawn political criticism. AIADMK general secretary Edappadi K. Palaniswami alleged that the rising costs of essential goods, such as sugar and pulses, have disproportionately affected disadvantaged families. Palaniswami also linked broader agricultural concerns to the situation, citing insufficient water release from the Mettur Dam for Samba paddy cultivation and calling for better coordination with Karnataka regarding Cauvery water rights. Recent reports indicate continued volatility as the Deepavali festive season approaches. In Chennai and surrounding regions, rice prices have surged by 10% to 37% in a single month, with retailers citing supply constraints and bulk purchases by agents. Shallot prices have reached Rs 140 per kg in Tiruchy, while onion prices at Chennai’s Koyambedu wholesale market have fluctuated, with premium Nashik onions reaching Rs 60 per kg due to reduced arrivals from northern states.

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