A sharp and contrasting trend in the prices of paddy and rice is causing distress across Karnataka, particularly in its southern districts. While farmers are struggling with low prices for their paddy harvest, consumers are facing a steep surge in the retail cost of rice, placing a heavy burden on middle-class households.
Retail Market Sees Sharp Spike in Rice Prices
Over the past one-and-a-half months, the retail price of various rice varieties has increased significantly. According to reports from grain merchants and the public, the rates have jumped by a minimum of Rs 10 to Rs 20 per kilogram. This sudden hike has hit families hard, especially with no subsidised rice available under government schemes to cushion the blow.
CK Ganesh, the director of the Mysuru Grain Merchants Association, confirmed the sharp increase. He explained that prices have risen by Rs 15 to Rs 20 per kg due to multiple factors. A key reason is a shortage in the supply of aged rice—specifically stocks that are 12 to 24 months old—which typically commands better prices and quality in the market.
Supply Shortage and the Wait for Stability
Ganesh provided insight into the supply chain issue. "Generally, rice that is 12 months to 24 months old fetches good prices for suppliers. There is a shortage of supply in the state now," he stated. He further clarified that even though the current paddy harvesting cycle is complete, it will take time for that paddy to be processed and aged into the rice that the market currently demands.
He estimates that another six months are required for prices to stabilise. "Once the old rice starts coming to the market, rates will fall," Ganesh assured. This timeline indicates that consumers may have to bear high costs for the foreseeable future.
Wholesale Rates and Farmer Distress
The price rise is not confined to retail. C Narayana Gowda, president of the Mysuru Hotel Owners' Association, reported that in the wholesale market, the rates of all rice varieties have increased by an average of 10%. He also noted that the inflationary trend extends beyond rice. "Not only rice, but the rates of several other grains also went up in the last few weeks," Gowda added.
In a stark contradiction, farmers are receiving dismal prices for their paddy. Badagalapura Nagendra, president of the Karnataka Rajya Raitha Sangha, highlighted the grim reality for cultivators. He stated that paddy prices are currently fluctuating between Rs 1,600 and Rs 2,300 per quintal.
"The paddy prices continue to fall even though the central government announced a minimum support price (MSP) of Rs 2,300 per quintal," Nagendra lamented. This situation creates a paradox where the raw material (paddy) is cheap, but the finished product (rice) is expensive, squeezing both ends of the supply chain—the producer and the end consumer.
The Impact on Households and the Road Ahead
The current crisis leaves middle-class families as the worst affected. With no access to subsidised staples and facing relentless inflation in essential grains, household budgets are being severely strained. The comments from merchant and farmer associations point to a systemic issue in the grain supply chain, where storage, aging, and market release cycles are creating artificial shortages and price volatility.
The coming months will be crucial. All eyes are on the arrival of the new, aged rice stock into the market, which is projected to begin easing prices only after another half-year. Until then, the disparity between farmer income and consumer expenditure on this essential food grain is likely to persist.
