Rice prices across Tamil Nadu have increased by Rs 5 to Rs 10 per kg, with traders attributing the rise to inadequate rainfall and reduced paddy production. Market participants warn that prices could climb further in the coming months.
The state is facing a rice shortfall estimated at 21 lakh tonnes. To bridge the gap, around 30 lakh tonnes of premium “sanna” rice is brought in annually for sale from Andhra Pradesh, Telangana, Karnataka and West Bengal, according to trade sources.
Supply pressures have intensified after poor rainfall in parts of Karnataka last year affected premium paddy output. In addition, lorry freight charges have risen by about 25%, pushing up the landed cost of rice from other states by Rs 5–10 per kg.
Farm output has also been weak in Tamil Nadu, Karnataka, Andhra Pradesh and Telangana in the last season. With summer rains and the current monsoon not supporting cultivation, summer harvests and the ongoing kuruvai crop are being hit, while low reservoir levels are adding uncertainty to kuruvai prospects.
Tamil Nadu Rice Mill Owners Association state secretary Paraneetharan said paddy procurement from neighbouring states has become costlier due to low stocks there, with paddy prices rising by up to Rs 10 per kg in recent months. He noted that Seeraga Samba rice, which sees significant exports, has risen from Rs 84 per kg in April 2025 to about Rs 180 now, and that some retailers are charging extra amid shortages.
