Kurnool: With paddy crop having
suffered a major damage in the flood in Andhra Pradesh, prices
of rice has shot up by a minimum of Rs 400 per quintal over
the last two days as unscrupulous traders have got back to
hoarding.
The price of rice in retail market has jumped from Rs 36
a kg to Rs 40 a kg for the preferred varieties.
Rice stocks are not freely available even at enhanced
price as a section of millers and wholesale traders have
joined hands to create an artificial scarcity in the wake of
reports that paddy production is likely to fall by 30 lakh
tonnes this Kharif season.
Kurnool is famous for its Sona Masuri, one of the
most-preferred rice varieties in the state. The district was
supposed to produce over 14 lakh quintals of paddy this
Kharif season as the cultivated area went up to 79,340
hectares.
However, the flood caused by Krishna and Tungabhadra
rivers have left the paddy crop in over 50,000 hectares
devastated.
The loss on this account, according to preliminary
estimates, is put at over Rs 200 crore.
Kundanavolu village, where Sona Masuri paddy is
extensively cultivated, presents a sordid picture now. "Not a
grain of paddy is left now as the Tungabhadra flood has
totally washed our crops away," P Goud, a farmer, said.
Farmers expected a yield of about 35 quintals per hectare
this season but now it has been reduced to nothing, Goud said.
The damage to paddy crop in Kurnool will have a telling
impact on the rice market in the state as the most-preferred
Sona Masuri will be virtually out of supply, market sources
said.
Sensing this, unscrupulous traders have started hoarding
the available stocks to create an artificial scarcity and
there by jack up the prices.
Reports from Hyderabad suggest that some wholesalers have
been sending away retail rice traders with a 'no-stock' plea
while many have inflated the price up to Rs 400 a quintal.
The trend is expected to continue as output is unlikely
to match demand in the coming days. "Won't be surprised if the
price touches Rs 50 or Rs 60 per kg very soon", N Nagaraju, a
trader, said.
In flood-ravaged Kurnool district, black-marketing of
essential goods was rampant for more than three days after
the flood.
Existing stocks of rice, redgram and other commodities
were totally destroyed as shops suffered the brunt of the
flood in Kurnool, Nandyal and other towns.
"But now the situation is back to normal as all roads to
Kurnool have been opened and goods started coming in. We have
also been raiding establishments that are hoarding stocks and
selling them at exorbitant prices," Kurnool Vigilance and
Enforcement Officer S A V Prasada Rao told a news agency.
Bureau Report
First Published: Saturday, October 10, 2009, 10:22