Government’s Fine Rice Scheme Drives Down Market Prices

NEWS CHARIOT:-The Telangana government’s initiative to distribute fine rice to white ration cardholders is having a significant impact on the open market, with prices of fine rice dropping notably. The cost per quintal, which was around ₹6,500 to ₹5,800 until last month, has now come down to below ₹5,000 in many areas. This decline—ranging from ₹400 to ₹600 per quintal—is being attributed to increased supply and reduced demand in the open market.

After coming to power, the Congress government took steps to promote fine rice cultivation by offering a ₹500 per quintal bonus for fine variety paddy. This move encouraged both farmers and rice millers to focus on fine rice production and procurement. As a result, the market has seen a surge in supply, which has naturally led to a reduction in prices.

Adding to this, the government’s ration distribution system has seen a major shift. Previously, under the BRS regime, coarse rice was distributed through ration shops. Many beneficiaries would sell this rice in the market and purchase fine rice instead, pushing up demand and prices. However, the Congress government’s decision to supply quality fine rice has reversed this trend. Beneficiaries are now consuming the ration rice themselves, reducing their dependency on the open market.

The fine rice distribution, launched during the Ugadi festival, has already been completed in around 80% of the districts. In the combined Nalgonda district alone, there are over 29 lakh beneficiaries. Each household is being supplied 6 kg of fine rice per month, amounting to a total monthly distribution of around 17,869 metric tonnes in the district.

Market prices currently vary based on variety: BPT Sona and RNR are priced around ₹5,400 per quintal, HMT at ₹5,600, and Jai Sriram at ₹5,500. Old stocks continue to sell at higher prices, ranging from ₹5,800 to ₹6,500.

With consistent government supply and strong beneficiary response, the fine rice market is stabilizing—providing much-needed relief to consumers.

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