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R. Balaji

The arrivals were sparked by the low production in Tamil Nadu due to drought, and the relatively high prices.

CHENNAI, Feb. 6

PADDY and rice prices in Tamil Nadu are holding steady after initial gains due to heavy arrivals from Andhra Pradesh, Karnataka, Maharashtra, Orissa and Bihar, according to trade sources.

Prices are likely to hold steady for at least the next one month, and there could be some increase in prices later, they said. Initially, prices were cheaper than local varieties, but subsequently prices have evened out.

Boiled rice varieties from Andhra Pradesh are catering to the requirements of the southern districts following the shortfall in production due to drought, according to trade sources.

Prices range between Rs 1,400 and Rs 1,500 per 75 kg for white Ponni varieties and the more common varieties range between Rs 850 and Rs 900.

Karnataka supplies to the western region in Tamil Nadu including Coimbatore, Tirupur and Erode and the districts in the South, particularly Madurai.

Over 200 lorry loads of paddy and rice arrive daily at the major milling centre at Red Hills, a northern suburb of Chennai.

The arrivals were sparked by the low production in Tamil Nadu due to drought, and the relatively high prices. Paddy varieties in Orissa were ruling around Rs 4 - 5 per kg and supply to Tamil Nadu have helped buoy up prices to about Rs 6.

The prices here are at least 20 per cent higher than that ruling in Andhra Pradesh. Andhra has commenced supply of boiled rice varieties such as Co-29, Swarna, IR-64 and 1001 to the southern districts in Tamil Nadu.

Wholesale prices range between Rs 1000-1300 per quintal. Raw rice (New) varieties such as Sona, IR-65 and 1001 fetch between Rs 1,400 and Rs 1,500, and raw rice (old) costs around Rs 1800-1900.

Paddy arrivals are also heavy with millers here looking for raw materials.

Paddy varieties like Ponmani, Sona (the equivalent of Ponni) and Co-29 fetch about Rs 780 - 800 per 75 kg.

In the Cauvery delta districts prices of paddy from out of the State range around Rs 6.50 - 7.50 per kg and match that of local varieties, which range around Rs 6.50. However, the quality of paddy from the North is better and traders prefer them when prices are at par.

Paddy and rice loads arrive in rakes of 32,000 bags each.

The paddy price includes the cost of transport Rs 1.90 per kg by road and Rs 1.25 per kg by rail.

The common grain varieties are not in demand with the labour force and the workers who are covered by the State Government's welfare schemes and doles.

For instance, the food-for-work scheme and the free rice distribution under drought relief mean that a whole section of the population has been taken out of the purview of the trade, they said.

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