CHENNAI: Rice price in the State, which remained static for the last six months, has increased marginally in the last two weeks owing to poor arrivals from Andhra Pradesh and Karnataka.

Sona variety (raw) is now being sold at Rs. 19 a kg in the wholesale market. Two weeks ago it was Rs. 18. Sona steam is being sold at Rs. 18.50 a kg compared to Rs. 17.50 and seasoned Sona at Rs. 19.50 as against Rs. 18.50 a kg in the last two weeks. In the retail market, the price is at least a rupee more than the wholesale price.

Till a fortnight ago, the State, on an average, was receiving not less than 250 to 300 truck loads of rice from Andhra Pradesh and Karnataka. Chennai city was getting 150 lorries a day. But, arrivals from both the States has come down to around 150 lorries a day.

FCI operation

The decrease in arrivals from Andhra Pradesh, according to wholesale rice traders here, is due to extension of procurement operations by the Food Corporation of India. Normally FCI withdraws its procurement operations in the State by April 30. This year, it has extended its operations by a month. As the minimum support price offered by it is better than the open market price, traders prefer the corporation for selling their produce.

Tamilnadu Food Grains Merchants' Association president Amara Visweswara Rao says the price increase was a temporary phenomenon. Once FCI stops procurement, the arrivals from Andhra Pradesh will increase. Moreover, the torrid summer has affected productivity in a majority of the mills in the State. He hopes the situation will improve by June 30.

According to wholesalers, mills in Karnataka, who were earlier selling their produce on credit, are now demanding cash payment. As many local traders are not ready to purchase on cash basis, the arrivals from that State has come down, contributing to the increase in price.

Chairman and Managing Director of the Tamil Nadu Civil Supplies Corporation K. Shanmugam says the increase is felt only in seasoned varieties and there is no increase in common varieties.

Good response

Regarding the supply of pulses and palm oil through the public distribution system, Mr. Shanmugham says the response from the cardholders is good. Though the open market price of tuar dal has come down, cardholders prefer PDS supply because of the quality.

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