Rice Prices Double At `100 As Rayalaseema Mills Face Paddy Shortage
More than 300 rice mills operate in the region, but most have not received adequate stocks for the current season.
Kurnool: Rice prices have risen sharply across the two Telugu states, putting fine varieties beyond the reach of general consumers.
The wholesale price of NDL and Kurnool Sona Masuri rice has increased from around 52 a kg in June to 92 now.
Retail prices are higher by 5 a kg, raising public concern that fine rice could soon cross 100 a kg.
Low paddy arrivals at rice mills across Rayalaseema is cited as one reason.
More than 300 rice mills operate in the region, but most have not received adequate stocks for the current season.
A mill typically processes around 50,000 bags of paddy during the three-month season following the kharif harvest.
Arrivals so far have not reached even 10,000 bags per mill, according to industry sources.
“Once the new paddy reaches the mills and fresh rice enters the market, the prices of old stocks are expected to come down.
But the mills are still waiting for sufficient arrivals,” said M Mallikarjuna Reddy, a rice miller from Panyam.
He attributed the shortage to a sharp decline in production.
Kurnool Sona and NDL rice varieties are in strong demand across Andhra Pradesh.
However, deficient rainfall has reduced paddy cultivation this year, while yields have fallen in several areas.
Traders have cited the El Niño phenomenon to explain the price rise, although a suspicion is that some millers are using this as a pretext to increase the prices.
Paddy prices have also risen sharply.
Traders are approaching farmers in their fields and offering 23,000 for eight bags, each weighing 80kg. In 2025, buyers were reluctant to offer even 13,000 for the same quantity.
“Traders are now offering advances and purchasing paddy even before the crop is harvested.
This indicates how severe the demand for paddy has become and why rice prices are rising,” said N Husen Reddy, a farmer from Nandyal.
Paddy cultivation has declined sharply in the three districts.
Kadapa was expected to have 33,000 hectares under paddy this kharif season, but cultivation was done on over 9,000 hectares.
Nandyal, which usually records more than 70,000 hectares under paddy annually, has reported cultivation on around 16,000 hectares this year.
The Kurnool district has also recorded a decline.
Officials estimate that paddy production across the three districts, which normally totals around 1.20 lakh metric tonnes, has fallen substantially this year.
The production figures, however, require further verification.
Meanwhile, the government's claim that fine rice is being sold at `55 a kg through Rythu Bazaars has provided limited relief to consumers.
Buyers have complained that some outlets are selling inferior-quality rice, even as prices continue to rise in the open market.
Paddy cultivation in Rayalaseema districts this year (in hectares)
District - Normal Area - Current Area
Kadapa - 33,078 - 9,327
Kurnool - 13,243 - 3,557
Nandyal - 70,201 - 16,433
Anantapur - 22,868 - 4,168
Chittoor - 9,066 - 1,849
