Rice prices up by 10-20% in wholesale market due to lower production
By G Mohiuddin Jeddy
It’s now time for rice to pinch the pocket. Since last month, the price of the staple has increased by 10%-20% in the wholesale market, with retailers further hiking it. Traders at the Agricultural Produce Market Committee (APMC) market in Vashi attributed the price rise to lower rainfall and dry weather last year, which led to lower rice production.
As a result, rice prices have increased by ₹5-10 per kg across variants. For instance, the wholesale price of Basmati rice has increased to ₹70-110 per kg this month, compared with ₹65-100 per kg last month. Similarly, regular rice now costs ₹28-70 per kg, up from ₹22-60 per kg last month.
The APMC gets large quantities of its rice supplies from southern India, Uttar Pradesh and Gujarat, followed by various regions in Maharashtra like Nagpur, Chandrapur, and Thane. Basmati rice comes from the northern parts of the country.
With the monsoon set to arrive soon, traders stock food grains to avoid wastage during transport. Despite the demand in the region for Kollam rice, which is used daily, and Basmati rice, which is popular for special occasions, traders said there is a shortage in supply of the two rice variants. The demand-supply gap has led to an increase in the prices of all variants.
“There is an increase of around ₹10 per kg in the price of rice, cutting across various qualities. There is a shortage in arrivals from Uttar Pradesh, which has affected [prices] the most,” said Devki Prasad Yadav, a wholesale trader at APMC. “Rice production has fallen in the country for the first time in eight years. This has led to an almost 50% reduction in arrivals at the market. The prices will continue to remain high for now. The situation will stabilise if the monsoon is good this year.”
Retailers, too, have hiked prices depending on the area. Kiran Prajapati, a retailer in Vashi, said, “Due to the hike in the wholesale market, we have no option but to increase our price by around ₹10. We cannot rule out further price hikes. Customers are upset but are forced to cough up despite the price increase since rice is consumed in most families.”
Vaishali Adsul, a Vashi resident, said inflation has already affected her household budget. “Now, even rice, which is a must in our households, is not sparing us. Some vegetables and grocery items one can buy in lesser quantities and adjust taste-wise, but you can’t possibly eat less rice and stay partially hungry.”
This article has been republished from the Hindustan Times.