The Hindu Business Line : Ample stocks keep rice prices steady in South

Chennai, July 3 Rice prices continue to rule steady with adequate stocks and assured supplies in the southern States. Despite the delayed monsoon in the Cauvery delta and a drop in summer crop, Kuruvai, ample groundwater availability has ensured significant paddy coverage, say farmers and traders.

Cultivation underway

Traders in Chennai and southern districts are sure that rice prices are bound to rule steady on ample arrivals from the rice growing districts – South Arcot, North Arcot, Kanchipuram, Tiruchi and Thanjavur – in Tamil Nadu; and from Karnataka and Andhra Pradesh, which is now supplying parboiled rice.

According to farmers’ representatives and traders, Kuruvai cultivation is well underway with groundwater supply.

Bigger concern

Traditionally, paddy in the delta areas covers about 4-5 lakh acres if there is water in the Cauvery system. As of now with farmers dependent on the groundwater, the coverage of paddy is estimated to be 40-60 per cent of the area. A farmer said the shortage of power in rural areas to run the pump sets was of bigger concern than the delayed monsoon.

What the farmers lose on the Kuruvai acreage they make up in the subsequent long-term crop – Samba cultivation, which commences during September-October and is dependent on the South-West monsoon. The total paddy acreage during the year in the Cauvery delta area is typically about 14 lakh acres a year. Kuruvai is only a supplementary crop, point out representatives of the Cauvery Delta Farmers Welfare Association.

Better option

Mr S. Ranganathan of the Cauvery Delta Farmers Welfare Association said that with the delayed monsoon, it would be better for farmers to opt for Samba cultivation directly rather than go in for a delayed summer crop. This would help conserve the water available in Cauvery for a larger cropping area. As of now, over 1.5 lakh acres have been covered under Kuruvai. The shortfall in Kuruvai is likely to be made up in Samba.

Karnataka compensates

According to Mr D.V. Krishna Rao, former president of the Tamil Nadu Foodgrain Merchants’ Association, the popular Ponni super-rice ranges around Rs 33-34 a kg. Supplies of white rice and paddy from Andhra Pradesh, a major source for northern parts of Tamil Nadu, have been hit over the past year since the neighbouring State is holding on to stocks to keep down its prices. But supplies from Karnataka have compensated.

Mr Amara Visweswara Rao, another rice trader and spokesperson for the association says, parboiled rice prices have dropped by about Rs 2 a kg.

Depending on the quality, it ranges between Rs 16.50 and Rs 21. Arrivals of parboiled rice from Andhra Pradesh are heavy as the variety is not consumed. White rice varieties from Karnataka are quoted from Rs 29 a kg.

Reports of a delayed monsoon have not impacted the market as overall output is unlikely to be affected, say traders. Stocks on hand are also adequate, they say.

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