Retail prices of fine rice varieties in Visakhapatnam surged, with 26 kg bags reaching ₹2,200. Families now struggle as costs rose 20% in one month. K. Suguna from PM Palem said, "Running a household has become a daily puzzle." The government started selling subsidised rice at 10 Rythu Bazaars to help.
Open-market retail prices of staple fine rice varieties in the city have surged sharply over the past few months, causing severe distress among middle- and lower-income households.
Standard 26 kg bags of premium fine rice have escalated by ₹200 to ₹400, crossing the ₹2,000 mark and reaching up to ₹2,200 for popular brands. Varieties like HMT and BPT Sannalu now retail at ₹80 to ₹85 per kg.
K. Suguna from PM Palem noted that running a household has become a daily puzzle, with last year's ₹1,400 bags now exceeding ₹2,100, fixed-income families struggle to absorb the sudden shock.
Millers' Cartelisation and Artificial Shortages
Traders and consumer groups attribute the inflation to artificial hoarding and market manipulation by rice millers rather than genuine supply shortfalls. Although regional weather irregularities delayed kharif paddy transplantation across North Coastal Andhra Pradesh, no major crop failures occurred.
Defending their pricing, a prominent wholesale merchant argued that surging paddy procurement costs (₹3,900 to ₹4,000 per quintal now against ₹2,000 last year) and transportation overheads from neighbouring regions leave them no choice but to pass on minimal incremental costs. Traders procure rice from Mandapeta, Nellore mainly apart from other areas in Godaavari and Krishna districts. Some even depend on the Bihar wholesale traders.
Sharp Contrast and Unprecedented Leap
Just a month ago, the same 26 kg bag was comfortably available for ₹1,800, and months earlier prices fluctuated between ₹1,250 and ₹1,400. This rapid 30-day increase reflects an unprecedented 15% to 20% price leap, placing a heavy financial strain on domestic budgets already coping with overall food inflation. Consumers point out that unlike seasonal adjustments, this escalation happened abruptly without any corresponding rise in general wages or household incomes, heightening economic anxiety across the region.
To restore price stability, consumer forums and public advocates have demanded immediate surprise inspections on wholesale godowns and strict penalties and ation against speculative traders under the Essential Commodities Act. Responding to public anxiety, the State government has stepped up initiatives to supply quality fine rice -- such as BPT Sannalu -- at subsidised rates of ₹50 per kg through 10 Rythu Bazaars.
Speaking to The Hindu, Visakhapatnam District Civil Supplies Officer V. Bhaskara Rao said that enforcement teams are actively inspecting storage units. Additionally, the government has distributed a total of 3,800 quintals of rice (26kg bag at ₹50 per kg) to 31,000 customers via Aadhaar verification, successfully buffering consumers against the open market volatility, from August till date.