https://iref.net/news/why-are-rice-prices-dropping-in-andhra-pradesh/Rice prices in Andhra Pradesh have dropped over the past few months due to the arrival of stocks at highly competitive prices from neighbouring states and a shift in international demand. Interestingly, consumers are benefiting as rice prices have dropped by an average of Rs 5 to Rs 7 per kilogram of nearly all varieties.
Rice prices of numerous rice varieties
The price of numerous popular rice varieties has dropped significantly, as reported by wholesale traders. For instance, the price of HMT rice has dropped to Rs 62 per kg from Rs 67 per kg, whereas Kurnool Sona is now selling for Rs 52 per kg, down from Rs 58 per kg. BPT rice, priced at Rs 54 per kg earlier, now stands for as low as Rs 48 per kg. Besides this, supermarkets are offering it at lower prices, as some varieties of Kurnool Sona are selling for as little as Rs 45 per kg.
Furthermore, Cherukuri Subba Rao, General Secretary of the Guntur district unit of the Andhra Pradesh Rice Millers Association, stated that Farmers in Karnataka, Chhattisgarh, Maharashtra, Tamil Nadu and Telangana produce rice at a lower price. Maharashtra and Karnataka states are producing rice, but local consumption is less. There is no charge on stocks moving from these states to Andhra Pradesh.
In Telangana, the distribution of fine-quality rice by the state government through the Public Distribution System (PDS) has decreased the demand for ordinary varieties. “Nearly 65 per cent of the population in Telangana is consuming this PDS rice,” Subba Rao stated. On the International level, a new tax imposed by the US government on Indian rice imports has worsened matters for exporters who are now limiting exports and increasing domestic supply.