Rice prices to increase marginally

There would be a marginal increas in the prices of paddy by Rs 100-200 and that of rice by Rs 15 to Rs 300 per quintal upto September 2008.

COIMBATORE: There would be a marginal increas in the prices of paddy by Rs 100-200 and that of rice by Rs 15 to Rs 300 per quintal upto September 2008, according to Tamil Nadu Agricltural University (TNAU).

Attributing one of the reasons for increasing paddy price to the increase in the cost of cultivation, an analysis carried out by Domestic and Export Market Intelligene Cell (DEMIC) in TNAU, said that a marginal decline in rice price was expected from October, due to Kuruvai harvest.

Direct procurement of rice from the millers by organized retailers would also lead to reduction in rice prices at consumer level, sine there was an increase of Rs 2 to Rs 3 kg of rice from miller to consumer through wholesaler and unorganize retailer of rice, Demic said.

Much reduction in prices of paddy and rice was not expecte in spite of anticipated larger area under ensuing kuruvai and samba/thaladi paddy, it said.

The cell suggested that farmers and farmers' groups might be encouraged to convert the paddy produced by them into rice and direct sale of the same to the consumer through farmers' shandies, which would reduce the rice prices at consumer level and increase the price realised by farmers.

The introduction of Rs 2/kg of rice scheme in Andhra Prade sh has direct impact on the price of paddy and rice in Tamil Nadu restricting the inflow of paddy from there, as a larger portio of the production was procured by that Government.
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