Wholesale Rice Prices Surge by 10-20% Amid Decreased Production
Published on: June 7, 2024.
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Rice Prices Surge in Navi Mumbai Amidst Lower Rainfall and Dry Weather
Navi Mumbai residents are facing the brunt of rising rice prices, which have increased by 10%-20% in the wholesale market over the past month. Retailers have also responded by hiking prices further. Traders at the Agricultural Produce Market Committee (APMC) in Vashi have attributed this price surge to last year’s lower rainfall and dry weather, which resulted in reduced rice production.
As a consequence of these factors, the prices of all rice variants have risen by ₹5-10 per kg. For instance, Basmati rice now costs ₹70-110 per kg, compared to ₹65-100 per kg last month. Similarly, regular rice is now priced at ₹28-70 per kg, up from ₹22-60 per kg previously.
The APMC sources a significant portion of its rice supplies from southern India, Uttar Pradesh, and Gujarat. Regions in Maharashtra such as Nagpur, Chandrapur, and Thane also contribute to the market’s rice stock. Basmati rice primarily comes from the northern parts of the country.
With the monsoon season approaching, traders tend to stock up on food grains to prevent wastage during transport. However, there is currently a shortage in the supply of the popular Kollam rice and Basmati rice variants, both of which are in high demand in the region. This demand-supply gap has been a major driver behind the surge in prices across all rice varieties.
Commenting on the situation, Devki Prasad Yadav, a wholesale trader at APMC, stated, “There is an increase of around ₹10 per kg in the price of rice, impacting all qualities. The most significant shortage is seen in arrivals from Uttar Pradesh. Rice production in the country has witnessed a decline for the first time in eight years. This has resulted in a nearly 50% reduction in arrivals at the market. Prices will likely remain high until the situation stabilizes, which depends on a favorable monsoon this year.”
Local retailers have also been forced to pass on the increased costs to customers. Kiran Prajapati, a retailer in Vashi, explained, “Due to the spike in wholesale prices, we have had no choice but to raise our prices by around ₹10. Further price hikes cannot be ruled out. While customers are understandably disappointed, they have no option but to pay the higher prices, given that rice is a staple in most households.”
One resident of Vashi, Vaishali Adsul, expressed her concerns about the impact of inflation on her household budget. She said, “Now, even rice, which is a necessity in our households, is becoming unaffordable. While some vegetables and grocery items can be purchased in smaller quantities and adjusted accordingly, reducing rice consumption is not a feasible solution.”
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