El Nino, Other Factor Push Up Fine Rice Prices

Hyderabad: Prices of fine rice varieties have risen by 20 to 30 per cent in recent months, with popular varieties now retailing at `60 to `70 per kg, amid concerns over the impact of El Nino and increased procurement by the state government under its fine rice PDS scheme.

Fine rice prices have increased by around `1,000 per quintal. RNR and BPT varieties, which were earlier available in the wholesale market at around `2,400 per quintal, are now priced at `3,300 and `3,000 per quintal, respectively.

The Jaisriram variety is selling at around `4,500 per quintal.

“The price rise is not rapid, but has been witnessed gradually in the past two or three months. In wake of the government's Sanna Biyyam PDS scheme, most farmers are now preferring to sell to the government, which offers an attractive `500 bonus.

Whatever remaining stocks which cost around `2,400 have an increased demand of late. They are now being sold for `3,000 to `3,300 per quintal.

The Jai Sriram variety now costs around `4,500,” said Md Saleem, a farmer-cum-trader in Gudur in Mahbubabad district.

The state government procures close to half of Telangana's total paddy production each season to support the PDS scheme.

Telangana recorded 148.03 lakh metric tonnes (LMT) of paddy production during the 2025-26 Kharif season, of which the state government procured 70.82 LMT.

The area under paddy cultivation in Telangana has declined by 15.84 per cent this Kharif compared with the previous year.

The area sown has fallen from 67.24 lakh acres last year to 56.6 lakh acres this year.

The Federation of All India Rice Millers Association said concerns over the impact of El Nino on the next crop had prompted consumers to stock rice in advance, adding to demand.

“El-Ninos fear and forecast of less production in next season has made the people buy in advance, hence the prices are increasing rapidly,” observed V. Mohan Reddy, a member of the Federation.

He said increased government procurement had also reduced the quantity available to millers and traders.

“Other reasons include maximum procurement by the government leaving less scope for millers and traders.

Nearly, 85 per cent paddy with millers for processing is from the government, as part of Custom Milling agreement.

Only 10 to 15 per cent millers mill their own rice.

Tighter constraints for getting loans have pushed millers to do job work,” he added.