KOCHI: A shortfall in supply of popular rice varieties, including Jaya, Surekha, Matta and Kranthi, has triggered a 26 per cent hike in rice prices in the state signaling consumers to prepare to pay more in the coming days.
The prices of Jaya and Matta touched Rs 48 and Rs 46 respectively on Sunday, recording an increase of 26 per cent over the prices in January. The state has witnessed an unprecedented spike of 40 per cent in rice prices in the last four months. The increase in the price of Jaya, a variety sourced from Andhra, is attributed to the shortage of supply. “There is a steep decline in the stock of Jaya rice this year. The prices were around Rs 37-38 last year,” said a trader. He said rice traders had supplied a major chunk of their stock during the Onam season at Rs 28-30 per kg.
“The situation will improve by mid-April as mills start procurement after harvest,” he added. The state consumes about 38-40 lakh tonnes of rice per annum and ‘Jaya’ and ‘Surekha’ account for at least 22 lakh tonnes of total consumption.
Another reason for shortage of rice is the drought condition prevailing in the rice producing states. “The yield has been very low this year compared to the previous year. The farmers have suffered huge loses” said the trader. Food and Civil Supplies minister P Thilothaman said there was a spike in the price of Jaya rice due to shortage of supply. He said the popularity of the rice variety might have prompted the traders to create an artificial shortage. However, he said the government was considering market intervention including opening of more rice stores.