TCCI urges immediate FCI market intervention to prevent rise in rice prices

The Trivandrum Chamber of Commerce and Industry (TCCI) has expressed serious concern over the sharp increase in rice prices and the possibility of further escalation in prices in the coming weeks due to the prevailing drought-like conditions in the major rice-producing States of Karnataka, Andhra Pradesh and Tamil Nadu.

In an official statement here, TCCI said that according to reports, reduced water levels in reservoirs and uncertainty regarding the current paddy cultivation season have adversely affected crop prospects in these States.

This has created uncertainty in the rice market, resulting in increased prices of paddy and rice. There is also a possibility of speculative stocking by sections of traders in rice-producing States, which could further tighten supplies and lead to an artificial increase in prices, TCCI said.