Archive · 28 Sep 2026
Tamil Nadu Rice Prices Rise as Paddy Supplies Tighten
Rice has become more expensive in Tamil Nadu because less paddy is reaching the state.
Paddy is the grain used to make rice.
Several rice varieties, including Ponni and IR-20, have risen in price.
Farmers in the Cauvery Delta faced poor rainfall and not enough irrigation water.
Harvests in some neighbouring states also fell.
This means rice mills are paying more to obtain paddy.
Traders worry that a weak kuruvai crop could keep prices high.
Mill owners think new supplies may arrive in the coming months.
The final outcome will depend on whether those supplies are large enough to meet demand.
Ponni rice prices rose from Rs 65 to Rs 78 per kilogram over the past month.
Lower paddy output and slower arrivals from neighbouring states have reduced supplies to Tamil Nadu mills.
Poor rainfall and limited irrigation affected cultivation in the Cauvery Delta, while harvests also declined in Andhra Pradesh, Telangana, and Karnataka.
Mills are paying about Rs 44 per kilogram for out-of-state paddy, up from Rs 32 last season.
Traders fear prices may rise further, while mill owners expect improved arrivals to eventually stabilize the market.
- Who
- Tamil Nadu households, rice traders, mill owners, and consumers of rice varieties such as Ponni and IR-20.
- What
- Retail and wholesale rice prices have risen sharply as paddy supplies and arrivals decline.
- When
- Prices increased over the past month, with traders changing prices three times in the past 50 days.
- Where
- Across Tamil Nadu, including the Cauvery Delta and the state’s rice markets and mills.
- Why
- Poor rainfall, limited irrigation, weaker harvests, and slower paddy arrivals from neighbouring states have reduced supplies.
Concerned traders and retailers
More optimistic mill owners
Future prices
Concerned traders and retailers
Traders expect prices to remain under pressure, and retailers are concerned about further increases if interstate supplies stay low or the kuruvai crop performs poorly.
More optimistic mill owners
Mill owners expect paddy arrivals to improve in the coming months and believe prices could settle when supplies recover.
Long-term supply
Concerned traders and retailers
Supporters of expanding fine-paddy cultivation argue that greater local production would reduce Tamil Nadu’s vulnerability to poor harvests in neighbouring states.
More optimistic mill owners
The articles do not report a direct objection from mill owners to expanding local fine-paddy cultivation; their focus is on expected improvements in near-term arrivals.
- Ponni price
- Rs 78 per kilogram, up from Rs 65.
- Mannachanallur Ponni price
- Rs 68 per kilogram, up from Rs 60.
- Premium Ponni price
- Rs 82 per kilogram, up from Rs 65.
- IR-20 price
- Rs 60 per kilogram, up from Rs 50.
- Raw rice price
- Rs 68 per kilogram in some shops, compared with Rs 45 previously.
- Out-of-state paddy cost
- About Rs 44 per kilogram, compared with Rs 32 in the previous season.
- Wholesale fine Ponni price
- Around Rs 75 per kilogram.