Business · Energy & Commodities · 2 hrs ago
Kangayam millers warn rice prices could reach ₹100 a kg by January
Rice millers in Kangayam, Tamil Nadu, warn rice could reach ₹100 a kg by January 2027.
Rice currently sells for about ₹75 a kg, according to the millers’ association president.
A shortage of paddy and rising prices are squeezing mills, with almost half of Kangayam’s rice mills not operating.
Paddy prices have risen sharply since January, and millers say suppliers are cancelling deliveries or selling only to buyers who can pay cash.
Poor monsoon rains may delay the next paddy harvest, adding to supply concerns.
Demand for rice usually rises after mid-January, which could put further pressure on prices.
Millers expect the retail price to climb if supplies remain tight, but the market may struggle to absorb the higher cost.
Kangayam rice millers warn retail rice prices could rise from about ₹75 to ₹100 a kg by the end of January 2027.
They cite scarce paddy and rising paddy prices as key concerns.
Almost half of the rice mills in Kangayam, in Tiruppur district, are not operating, according to the millers’ association president.
The price of a 26 kg bag of rice has risen by almost ₹500, but the market is not ready to absorb the increase, he said.
Poor south-east monsoon conditions may delay paddy arrivals from the January harvest and put further pressure on prices.
- Who
- Rice millers in Kangayam, represented by association president Palaniswamy.
- What
- They warn that retail rice prices may reach ₹100 a kg by the end of January 2027.
- When
- The warning was reported in October 2026; the projected price rise is by the end of January 2027.
- Where
- Kangayam, in Tiruppur district, Tamil Nadu.
- Why
- Millers cite limited paddy availability, rising paddy prices and a possible delay in arrivals after poor south-east monsoon conditions.
This story does not have two clearly opposing sides.
The KNM paddy variety cost ₹24 a kg, while Amman Ponni cost ₹29 a kg.
Millers reported current paddy prices of ₹42 a kg for KNM and ₹46.20 a kg for Amman Ponni.
Paddy arrivals from the harvest may be delayed, and rice prices may reach ₹100 a kg by the end of the month.
- Current retail rice price
- Approximately ₹75 a kg
- Projected retail rice price
- ₹100 a kg by the end of January 2027
- Kangayam mills
- Almost 50% are not operating
- KNM paddy price
- ₹42 a kg, compared with ₹24 in January 2026
- Amman Ponni paddy price
- ₹46.20 a kg, compared with ₹29 in January 2026
- Rice bag price increase
- Almost ₹500 for a 26 kg bag
What people are saying
The retail price of rice is approximately ₹75 a kg now.
Paddy is not available for the mills and almost 50% of the rice mills in Kangayam in Tiruppur district are not operating now.
However, the market is not ready to absorb this hike.
This will only push up the prices as the demand is usually high after mid January.