Superfine quality rice prices likely to touch Rs 60 a kg

Guntur: Super fine quality rice selling at Rs 54-Rs 55 akg is expected to touch Rs 60 due to fall in supply. Similarly, prices of almost all varieties of rice are likely to rise by Rs 4 to Rs 5 a kg. Currently, Kurnool Sona Masuri variety is selling at Rs 55 a kg, Kurnool Sona Masuri (Jasmine ) at Rs 54, BPT (Sannalu) at Rs 54. Other varieties of rice prices too are also expected to increase by Rs 3 to Rs 4.

According to AP Rice Millers Association due to failure of crop during the last season and depletion of stocks of these varieties with rice millers these varieties, the prices are likely to climb up. Consumption of super fine quality rice is gradually increasing and the government is purchasing 75-kg paddy bag at Rs 2,100.

Earlier, the rice millers had huge stocks of rice but now these have exhausted. Even white card holders getting PDS rice are consuming these fine varieties causing a rise in demand. Earlier, rice traders in Punjab, MP, Chhattisgarh, Orissa, Assam, Karnataka and Tamil Nadu had exported rice to the AP at lower prices due to low cost of production in these states. Labour cost is less in MP, Assam, Orissa and Chhattisgarh states. Besides, farmers in these states use less quantity of fertilisers compared to AP. As the staple food in these states is wheat, most of the rice is exported or sold to FCI. Hence, the rice price has not increased much for the last few years.

Due to failure of crop in the last year, increase of transport cost caused by diesel price hike, these states are not offering much of paddy stocks to AP as earlier. The rice millers in these States are exporting the rice stocks to Mumbai, Delhi markets to make a fast buck. People migrated from AP, Tamil Nadu, Karnataka, Telangana consume more rice in Delhi and Mumbai. .

In Assam and Orissa, working class people consume boiled rice (uppudu biyyam).

At present, 75 kg rice bag is purchased at Rs 2,100 by the government. Following rise in MSP for paddy, fertiliser prices, prices of rice are also increasing in open market.

Most of the white ration card holders sell the PDS rice they receive in black market at Rs 8 Rs 10 a kg and buy good quality rice at higher price. Traders are polishing the PDS rice and selling it at higher price in the open market. Some of the traders are exporting them through Kakinada port.

Guntur city Rice Millers Association president Ch Sambasiva Rao said, "Groundnut oil which was sold at Rs 120 a kg is now selling at Rs 200. Similarly, palmolein price jumped to Rs 120 a kg from Rs 90 within short period. But price of rice increased by Rs 2 to Rs 3 kg."

A rice trader P Satyanarayana said, "Prices of all varieties of rice have increased by Rs 4 to Rs 5 a kg in the last three months. They are likely to go up further in the next few months."