Kottayam: In the past three months, the price of rice in the market increased by around Rs 13, forcing Malayalis to spend Rs 780 crore on their favourite staple diet. On average, around 10 lakh tonnes of rice is needed every three months to supplement the needs of Malayalis. Of this, six lakh tonnes arrive from the private market.
Earlier, white rice was cheaper than brown rice. However, the wholesale price of white rice now stands at Rs 53 per kg while brown rice is at Rs 50 per kg due to fluctuations in the market.
A new load of Jaya (white) arrived from Andhra Pradesh on Saturday at a rate of Rs 55, said Rajesh, a wholesaler shop owner at Changanassery market. Meanwhile, the wholesale price of some white rice brands in Kerala touched Rs 58 per kg on Saturday.
Additionally, there is a notable increase in the price of chillies and coriander. Around Rs 100 has increased for Kashmiri chilli alone.
The main reason behind the increase in the price of rice is due to the 5.62 per cent (22.9 lakh hectares) decrease in the area under paddy cultivation in North India. Further, the loss incurred due to unpredictable climatic conditions and crop loss led to many people leaving the sector.
Meanwhile, the consumption of rice increased due to an upsurge in wheat prices. As a result, the rice from Karnataka, Andhra Pradesh and Tamil Nadu is sold more to North India, reducing the quantity bound for Kerala.
Further, the central government’s plan to reduce fuel costs and pollution by adding 20 per cent ethanol to vehicle fuel has also backfired. Ethanol, a by-product of sugar factories, can also be produced from rice. As a result, the government diverted excess rice in FCI warehouses for ethanol production, leading to a shortage and price hike.
