Prices of premium rice varieties have jumped sharply amid expectations of lower kharif production, particularly in southern India.
Highlights
- Premium rice varieties have become up to 50% costlier since last year amid concerns over lower kharif production.
- In Andhra Pradesh, Grade 1 BPT rice prices have risen to ₹6,200 per quintal from ₹4,000 a year ago.
- Popular varieties such as Ponni, Sona Masuri and Jeera rice are seeing higher prices amid supply concerns.
- Industry estimates suggest premium rice production in the South could decline 4–5% this year.
New Delhi: Prices of premium rice varieties have surged by as much as 50% from last year amid concerns that lower acreage could affect kharif production, particularly in southern India.
Premium varieties such as Ponni rice, Sona Masuri and Jeera rice have become more expensive as farmers planted less area under these crops this season. The report said farmers reduced acreage partly because premium rice prices were weak last year.
In Andhra Pradesh, prices of Grade 1 BPT rice have increased to around ₹6,200 per quintal from ₹4,000 a quintal a year ago. Sona Masuri rice is trading at around ₹80 a kg, according to the report.
Industry representatives expect production of premium rice varieties to be lower this year. New Delhi-based exporter Rajesh Paharia Jain said production prospects for these varieties are weak and attributed the decline mainly to lower acreage.
The report cited Rice Exporters Association President BV Krishna Rao as saying acreage in Andhra Pradesh, Karnataka and Telangana could be 30–40% lower. Prices of premium rice varieties have already risen sharply on concerns about reduced output.
The Agriculture Ministry’s acreage data cited in the report put rice area at 443.78 lakh hectares, compared with 426.81 lakh hectares a year earlier. Despite an increase in overall rice acreage, the industry says the decline is concentrated in areas growing particular premium varieties.
The Weather Watch Group of the Agriculture Ministry also reported a decline in rice production in some regions during the previous year. Industry estimates suggest premium rice output in southern India could fall around 4–5% this year.
Meanwhile, lower supplies are expected to keep premium rice prices firm in the near term. Traders say prices may remain around current levels and could rise further if consumers shift toward other premium varieties.
