Rice lobby exploits El Niño fears to drive up prices in South India; centre steps in

NEW DELHI/THIRUVANANTHAPURAM: With rice prices soaring across South India, the Centre has introduced stringent measures to curb hoarding and artificial scarcity. False claims that cultivation has been disrupted due to inadequate rainfall are being circulated to drive up rice prices in Kerala and other states.

In this backdrop, the Centre has directed rice traders, retail chains and mill owners to report their stock positions every week. It has also empowered Kerala, Tamil Nadu, Karnataka, Andhra Pradesh and Telangana to impose stock limits on rice and paddy held by traders and millers.

Rice traders and mill owners must update their stock details every Friday on the stock portal of the Union Department of Food and Public Distribution. Stocks of rice and paddy must be reported separately. Those who fail to comply with the directive will face action under the Essential Commodities Act, including penalties.

The directive will remain in force until January 31. States can impose or modify restrictions based on an assessment of market conditions.

50 lakh tonnes for the open market

• To ensure adequate availability of rice, sales of Bharat Rice will be increased. The total quantity of rice supplied to the open market will be raised from 25 lakh tonnes to 50 lakh tonnes, including Bharat Rice.

• The Centre expects that effective implementation of stock limits and improved distribution will help contain the price rise.

False claims exploiting El Niño

Rainfall was deficient in Andhra Pradesh, Telangana, Tamil Nadu and Karnataka. Amid the El Niño conditions, the Telangana Chief Minister had appealed to farmers to conserve water to the maximum extent possible. Some farmers' organisations in Andhra Pradesh had also decided to reduce cultivation if rainfall remained deficient in October. However, after heavy rains in mid-October, they reversed the decision and went ahead with cultivation. The rice lobby is allegedly concealing these developments as part of its strategy to push up prices.

In Kerala, Masoori rice, which was priced at Rs 60 per kg in the wholesale market until two months ago, has now reached Rs 90. The price of Ponni rice has also risen from Rs 75 to Rs 90 per kg. The same varieties are priced at Rs 70 per kg in Andhra Pradesh and Rs 74 in Telangana. Other varieties are available from Rs 34 per kg. In Tamil Nadu, rice prices start at Rs 42 per kg.

Rice prices on Saturday (Chalai Market)