In Tiruchy, the procurement price of fine variety paddy has surged by 40% due to reduced samba production, attributed to insufficient water supply from the Mettur dam and concerns of an impending harsh summer, which could limit further cultivation until the next kuruvai season. This situation has led to a decrease in samba paddy acreage from 56,000 hectares last year to about 35,000 hectares this year. With over 60% of samba paddy farmers growing fine varieties, rice mills are now planning to store paddy, anticipating lower production both in the delta region and parts of Karnataka. As a result, the procurement price for a 62 kg bag of fine variety paddy has risen to around Rs 1,800, compared to a maximum of Rs 1,300 last year.
Farmers, particularly those cultivating fine paddy varieties, are finding it more profitable to sell their produce directly to private mills rather than to Direct Purchase Centres (DPCs), which offer lower rates. This shift is incentivizing farmers to focus more on fine variety cultivation in the future. For instance, a farmer from Punganur reported selling a 62-kg bag for Rs 1,780, finding farming more encouraging under these conditions. The Tiruchy rice mills’ association notes that freshly harvested paddy is now fetching prices similar to those of paddy stored for several months. With fine variety rice currently priced at Rs 50 per kilogram in the Manachanallur rice market, there is an expectation that prices could rise to about Rs 65/kg in the coming months, as stored paddy enters the market.