Prices of fine rice varieties, including Sona Masoori, have seen a steep increase, reaching Rs. 6,000 per quintal, marking an upsurge of about Rs. 1,000. This hike is significantly affecting household budgets, particularly for those who rely on these varieties as a staple food. The primary cause of this increase is a substantial reduction in the cultivation of fine rice. The reluctance of farmers to grow these varieties is due to the high costs and irrigation demands involved. Additionally, the area under paddy cultivation has dropped markedly in districts like Suryapet, Nalgonda, and Yadadri-Bhongir. The current cultivation is only 59.3% of the usual area, indicating a likelihood of further price increases in the coming months.
The demand for rice remains consistent despite the price hike, as it is an essential commodity. The escalation in prices is not just a result of decreased local production, but also because of the export of rice to other states. This dual pressure of reduced supply and steady demand is leading to a tighter rice market and higher prices for consumers. The situation is exacerbated by factors like crop holidays under the Nagarjuna Sagar Project and the depletion of groundwater levels, which have contributed to the nearly 50% decrease in rice cultivation in the region.
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India