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 reduction in rice prices in the coming weeks, according to rice millers. The decrease is attributed to lower paddy prices this year compared to last year.
A.C. Mohan, secretary of the Federation of Tamil Nadu Rice Mill Owners and Paddy Rice Dealers’ Association, predicts a ₹3-4 per kilo drop in wholesale rice prices by February, translating to a ₹1-2 reduction at the retail level. This year’s lower paddy prices, currently ₹23/kg (compared to ₹28/kg last year), are due to a combination of factors including a successful monsoon season in 2024, normalized rice exports, and a predicted bumper crop across many states. Last year’s higher prices were influenced by the Ukraine war, reduced domestic rice production (down 3.7% in 2023), and droughts in some rice-producing states.
D. Thulasingam, president of the Federation, highlighted the positive impact of the improved monsoon and normalized exports. He also urged the central government to remove the Goods and Services Tax (GST) on rice bags under 25 kg to further benefit consumers already burdened by rising essential commodity prices. He further requested the state government to reduce the basic charge for rice milling, which recently increased from ₹35/unit to ₹150/unit. The Redhills rice market currently sees a high volume of paddy arriving from Andhra Pradesh, Karnataka, and Telangana.
First Piper 