Hyderabad: Fine rice prices in Hyderabad remain well above the limits set by the Telangana government on 31 October. Most retailers still charge Rs 80 to Rs 95 per kg, against the Rs 66 cap for BPT rice.
The government fixed maximum retail prices for three popular fine rice varieties in Hyderabad and Medchal. It capped BPT and KNM rice at Rs 66 per kg, RNR or Telangana Sona at Rs 74, and HMT and Jai Sriram (JSR) at Rs 79.
However, few shops follow the order even after a week. Some retailers in Ramnagar have displayed price boards as directed. One customer there also bought HMT rice at the notified rate of Rs 79. Meanwhile, shops in most other areas continue to charge their earlier prices.
Sona Masuri currently sells for around Rs 90 per kg, while HMT costs about Rs 104. Several premium varieties have also crossed Rs 100. Moreover, fine rice prices have risen by Rs 300 to Rs 500 per 25-kg bag over the past month.
Fine Rice Prices Reshape the Market
The usual price order has changed. Low-grade basmati, which sells for around Rs 90 per kg, now costs about the same as or less than superfine Sona Masuri. Meanwhile, mid-range basmati sells for Rs 120 to Rs 140 per kg.
Traders blame supply chain issues for the continued price gap. A wholesaler said millers were not supplying rice at rates that would allow wholesalers and retailers to follow the government’s price limits.
He explained that millers would need to sell rice to wholesalers at Rs 5 to Rs 20 per kg below the notified retail prices. Only then could traders comply with the government order.
Similarly, a retailer said shopkeepers were reluctant to sell their existing stock at the fixed rates. They had purchased the stock at higher prices and expected losses if they reduced prices immediately. However, they would lower rates once cheaper stock arrived from millers and wholesalers.
PDS Rice Diversion Under Scanner as Prices Rise
Meanwhile, the government has stepped up enforcement to control prices. Joint teams from the Civil Supplies, Police, GST and Legal Metrology departments have inspected wholesale and retail outlets, along with rice mills in Hyderabad, Rangareddy and Medchal-Malkajgiri districts.
The inspections covered major wholesale markets, including Begum Bazaar, Nampally and Maharajgunj.
Officials have registered 12 cases against rice traders over alleged illegal stockpiling and overpricing. They also seized large quantities of ration fine rice from mills in Rangareddy. Authorities reported further seizures in Karimnagar, Nalgonda, Miryalguda and Devarakonda.
Furthermore, officials are investigating the alleged diversion of rice from the public distribution system (PDS). Some traders allegedly bought fortified PDS fine rice from beneficiaries at Rs 20 per kg. They then polished the rice, mixed it with other varieties and sold it in branded bags at much higher prices.
Investigators also suspect that traders sent some of these bags to Maharashtra, Karnataka and Chhattisgarh.
Telangana’s Fine Rice Distribution Scheme
The state began distributing fine rice through ration shops in March 2025. The scheme covers about 3.42 crore beneficiaries, with each person receiving 6 kg every month.
The government supplies more than 2.05 lakh metric tonnes of rice every month. It also spends nearly Rs 14,000 crore annually on the scheme.
Civil Supplies Minister N Uttam Kumar Reddy warned traders against hoarding, black marketing and overpricing.
“The government will not tolerate profiteering at the expense of consumers,” he said.
He added that enforcement would continue until the market stabilised. He also assured consumers that Telangana had sufficient rice stocks.
Additionally, he urged consumers not to panic or purchase rice in bulk. He asked ration card holders to consume the fine rice supplied through ration shops, which he said was grown and milled in Telangana.
Civil Supplies Commissioner Stephen Ravindra briefed the minister on the enforcement drive. Officials had earlier met wholesalers, retailers and millers to discuss the situation.
Opposition Questions Rice Pricing and Supply
Meanwhile, the opposition has also raised concerns over rising prices. BRS leader T Harish Rao alleged that farmers received only nominal prices under the minimum support price (MSP) system, while middlemen earned more than Rs 8,000 per quintal.
Traders, meanwhile, expect fine rice production to decline this season because of El Nino conditions. They warn that lower output could push prices even higher.