Essential prices spiral ahead of Onam; rice up Rs 15, coconut oil crosses Rs 300

THIRUVANANTHAPURAM: Prices of rice and other essential commodities are soaring in the open market even before the Onam shopping season gets into full swing. Traders warn that prices could rise further unless the government intervenes strongly in the market.

Rice prices have increased by Rs 4 to Rs 15 a kg over the past month, depending on the variety. The price of sugar has climbed to Rs 54 a kg, while coconut oil, whose price had fallen in recent months, has also started rising again. Fruit and vegetable prices, too, have gone beyond control. Rasakathali (Njalipoovan) bananas are selling at Rs 100 a kg, while the price of Nendran has reached Rs 85.

Traders attribute the sharp rise in rice prices to an alleged understanding between rice millers and middlemen in Andhra Pradesh. The price increase comes at a time when rice production in the country has risen and the Food Corporation of India (FCI) has also increased its procurement accordingly.

According to traders, whenever conditions emerge for rice prices to rise in the country, millers in Andhra Pradesh stockpile paddy on a large scale and reduce the quantity being processed into rice. Middlemen then cite the resulting shortage of rice in the market to push up prices.

There are mills in Andhra Pradesh that procure paddy from Karnataka, among other places, process it into rice and send it to Kerala.

What the middlemen say

Middlemen have reportedly told traders that crop losses in Rajasthan and other factors are behind the rise in prices. However, no rice from Rajasthan comes directly to Kerala. Kerala also has limited scope to intervene against the alleged stockpiling of paddy in Andhra Pradesh.

Coconut oil crosses Rs 300

Coconut oil, which had fallen to as low as Rs 260 a litre, has now crossed Rs 300. A 900-ml bottle of Kera coconut oil costs Rs 299, while some other brands are priced as high as Rs 350. Coconut oil had crossed Rs 500 a litre during last year's Onam season.

Rice prices at Chala market

Apart from Supplyco outlets, rice has also begun to be distributed through ration shops at Rs 26 a kg. The measure will help contain the rise in rice prices, said Food Minister Anoop Jacob.