The Hindu : Tamil Nadu News : Rice prices at its peak in the Delta

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Sunday, Nov 16, 2008
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Tamil Nadu

Tamil Nadu

Rice prices at its peak in the Delta

Special Correspondent

Increase attributed to the hike in the procurement price of paddy

TIRUVARUR: Prices of both boiled and raw rice have touched its peak in the Cauvery delta region of Tiruvarur district and good quality boiled rice is quoted at Rs.29 per kg and raw rice at Rs.30 per kg and the second quality rice is being sold a few rupees less per kg.

A cross-section of rice merchants in Tiruvarur, Needamangalam and Mannargudi told The Hindu on Saturday that the rice prices were almost same both in urban and rural areas and in major cities like Chennai, Coimbatore and Madurai.

The main reason for the steep hike in rice prices in Tamil Nadu was attributed to the hike in the procurement price of paddy by the State government at Rs.1,050 per quintal for Grade A variety (fine variety) paddy and Rs.1,000 per quintal for common variety. The private traders are offering Rs.100 more per quintal for fine variety paddy.

A rice mill owner at Needamangalam said that the raw rice out turn would be about 45 kg per quintal of paddy and the out turn for boiled rice would be about 55 kg per quintal of paddy if hulled properly in the rice mills. He pointed out that hulling charges could be compensated by selling the bran.

The cost of raw rice at the rice mill point works out nearly Rs.23 per kg and Rs.22 per kg for boiled rice. With huge cost on transportation, the wholesale merchants get the rice between Rs.25 and Rs.26 per kg and the cost goes up when it reaches the retailers.

The off-take of rice in the fair price shops was good in the district. The family cardholders purchase one rupee per kg boiled rice, he said and added that most of them use it only for preparing idlis. There is also good demand for the ration rice and small hotels, restaurants in rural areas purchase both the raw and boiled rice at Rs.10 per kg and use them for preparing idlis, dosas and other breakfast items. He also said that some family cardholders purchase the ration rice and sell them to the hotels at many places.

Steps to prevent smuggling

Meanwhile, the Tiruvarur district administration in coordination with the police, has intensified checking of all vehicles to prevent smuggling of ration rice.

The Collector has also appealed to the people to bring to his notice if anyone was indulged in smuggling of ration rice or keeping it godowns.

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