CHENNAI: Despite heavy rain and disruption of road traffic, prices of rice continue to remain stable in the State, thanks to heavy arrivals from Andhra Pradesh and Karnataka.

In fact, the prices have marginally fallen in the last one week. With the possibility of a bumper crop in the neighbouring States and increased arrivals, there will be a further fall in the prices, according to wholesale traders here.

The price of seasoned fine rice varieties, which are six to eight months old, is Rs. 18 to Rs. 18.50 a kg in the wholesale market. The Narasaraopet variety of rice from Guntur district in Andhra Pradesh, considered the best, is available at Rs. 19 a kg in the local market.

Freshly harvested fine varieties such as Sona are being sold at Rs. 14.50 to 15 a kg in the wholesale market while common variety is being sold at Rs 11 a kg. In retail trade, these varieties are being quoted at a rupee more than the wholesale price.

Tamilnadu Foodgrains Merchants' Association president Amara Visweswara Rao says on an average about 100 lorry loads from Andhra Pradesh and 60 from Karnataka arrive in the city. Most of the stock is one-time steam boiled rice. The recent rain and consequent damage to national highways have not affected the arrivals.

Wholesale merchants here are finding it difficult to send their consignments to other parts of the State. As the offtake from local merchants is negligible, there has been a further fall in the prices.

According to D. Thulasingam, president of the Tamilnadu Rice Mill Owners and Paddy and Rice Wholesale Merchants Association, the State is also getting heavy stock of paddy. The market is flooded with the stock not only from the neighbouring States but also from other parts of the country. In the absence of sufficient offtake, the price has come down.

The main reason is conversion of the country into a single food zone and removal of all curbs on movement of rice.

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