Hyderabad:
Rice, the staple food for people across the country, is witnessing a steep increase in its price. An initial drought which was followed by floods and unseasonal rains in Andhra Pradesh - one of the major rice producing states in the country - has badly hit the paddy crop. Kharif rice output is down by over 35 per cent. Following this, prices have shot up by up to 15 per cent in the last 10 days.
Manish a rice trader, says, "People thought there are floods. Rice has become costly. So lets stock up. People bought more of it, so it became more costly."
Kurnool Sona Masoori, a variety of rice, that could be bought for Rs 20-22 a kilogram just two years ago is available for nothing less than Rs 38-40 now.
Andhra Pradesh is not the only state witnessing a rise in rice prices. The country will see a decline of around 12 million tonnes in rice production this kharif season, at 87 million tonnes as against 99 million tonnes produced last year.
Sharad Pawar, Union Agriculture minister, says, "That's why looking to plan better for rabi."
Market observers say consumers are going to feel much more than a pinch. Sandeep Desai, rice trade analyst, says, "Rice price is likely to increase by five to six rupees. It is not likely to reduce because new stock was to come now but then there has been a huge loss of crop. So where will the new stock come from? The best quality rice comes from Kurnool-Raichur."
Analysts say the increase in support price for rice, release of buffer stocks, more paddy crop in rabi and decision not to abolish import duty on rice might keep rising prices in check.