Dip in production, summer concern push paddy prices up in Tamil Nadu

By Nacchinarkkiniyan M

A drop in samba production due to lack of water supply from Mettur dam coupled with concerns of a harsh summer restricting any further cultivation till the next kuruvai season have shot up the procurement price of fine variety paddy in the district market by 40%.

This, in turn, could jack up the wholesale market price of rice by as much as Rs 15 per kilogram in the next six months, agriculture and farmers’ welfare department officials said.

According to sources, samba paddy acreage in the district stands at about 35,000 hectares this year against 56,000 hectares last year. With over 60% of samba paddy farmers cultivating fine varieties, a senior agriculture department official said rice mills now plan to store paddy owing to lower production this year in the delta region as well as parts of Karnataka.

Concerns of harsh summer, making the harvest of the current agricultural year the last before next kuruvai, adds to the situation, the official added. As a result, a 62 kg bag of fine variety paddy commands a procurement price of about Rs 1,800 against a maximum of Rs 1,300 last year.

Vayalur N Rajendran, a farmer leader from the Tamil Maanila Congress, said, ‘’Farmers who have cultivated fine paddy varieties are reluctant to sell their produce to direct purchase centres (DPCs) as they offer Rs 908 for a 40-kg bag. On the other hand, private mills this time are keen on purchasing paddy directly from the fields, enabling farmers to save up on transportation and other cost. This would also encourage farmers to cultivate more fine varieties in the coming years.”

Selvam S, a farmer from Punganur who has cultivated fine variety paddy in four acres, said he had sold a 62-kg bag for Rs 1,780. “It is more encouraging to involve in farming now,’’ he added.

Mentioning freshly harvested paddy is now commanding a procurement price akin to harvest stored for months, Raguraman RA of the Tiruchy rice mills’ association said, “Last year paddy harvest (stored for months) fetched up to Rs 2,100. Seeing this some mills doubled the storage. The paddy can increase the price after six to eight months.”

While a kilogram of fine variety rice is currently sold at Rs 50 in the Manachanallur rice market, agriculture department sources said paddy that is stored now and hits the market by July can shoot up rice price to about Rs 65/kg then.

Paddy acreage down

Samba paddy acreage in Tiruchy stands at 35k hectares this year against 56k hectares last year. Rice mills are planning to storing paddy owing to lower production in the delta as well in Karnataka

This article has been republished from The New Indian Express.