Rice growers fear a sharp rise in rice prices

Rice farmers in Kangayam fear that the retail price of rice may touch ₹100 per kg by the end of January 2027.

The non-availability of paddy rice and the continuous increase in the price of paddy rice are worrying millers, said Palaniswamy, president of the Kangayam Rice Millers Association.

The retail price of rice is now around ₹75 per kg. It is likely to touch ₹100 per kg by the end of January. Paddy is not available for mills and nearly 50% of the rice mills in Kangayam in Tiruppur district are now non-functional. The price of rice per 26 kg bag has gone up by nearly ₹500. However, the market is not ready to absorb the increase, he said.

Paddy price which was ₹24 per kg in January this year is ₹42 per kg for KNM variety and Amman Ponni price was ₹29 per kg in January and now ₹46.20 per kg.

Paddy is not available for credit to millers. Those who are able to pay in cash visit vendors and take rice in bulk. Many rice mills are canceling paddy shipments at the last minute, he added.

With reports coming in that farmers have not sown seed for the January harvest due to the poor southeast monsoon, the arrival of rice in January next year is likely to be delayed. This will only increase prices as demand is usually high after mid-January, Mr Palaniswamy said.

Published – 8 Oct 2026 23:16 IST