Mon Jan 20 18:17:57 UTC 2025: ## Rice Prices Set to Drop in Tamil Nadu

**CHENNAI, January 20, 2025** – Consumers in Tamil Nadu can expect a decrease in rice prices in the coming weeks, according to rice millers. The price of paddy, the raw material for rice, is currently lower than last year, leading to predictions of a ₹3-4 per kg drop in wholesale rice prices by February. Retail prices are expected to fall by ₹1-2 per kg.

This year’s lower paddy prices, currently ₹23/kg (compared to ₹28-30/kg last year), are attributed to a good monsoon season in 2024 and a normalization of rice exports. Last year’s high prices were impacted by the Ukraine war, which spurred increased exports of fine non-Basmati rice and a 3.7% reduction in overall domestic rice production due to drought in some rice-producing states. Government intervention, including increased customs duty on rice imports, helped stabilize prices in 2024. The Union Agriculture Ministry anticipates a bumper rice crop this year across many states, further contributing to lower prices.

While some farmers in Cuddalore and parts of the Delta region experienced setbacks, the overall national production is expected to meet the state’s demand, according to the Federation of Tamil Nadu Rice Mill Owners and Paddy Rice Dealers’ Association. The association is also urging the central government to remove GST on rice bags smaller than 25 kg to further benefit consumers struggling with rising costs of living. They also called on the state government to reduce the basic charge for rice milling, which recently increased from ₹35/unit to ₹150/unit.

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