Rice crosses Rs 100 a kg in Telangana; state warns hoarders
By Rohit SharmaMarkets Analyst, Peepals Business
Representative image: Coernl / Pixabay
Fine rice crossed Rs 100 a kg in Telangana and Sona Masoori nears it in Karnataka; Telangana warned millers against hoarding on October 28, 2026.
What Happened
Retail prices of fine rice have crossed Rs 100 a kg in parts of Telangana, and Karnataka shops are close behind, pushing the Telangana Civil Supplies department to warn millers and traders against hoarding. At a meeting in Hyderabad on Wednesday, October 28, 2026, officials told millers and wholesalers from Miryalaguda, Nizamabad and Nalgonda that the rice now on sale comes from the previous season's stock, so sharp price rises are not justified, and that anyone creating an artificial shortage would face legal action. In Karnataka, Sona Masoori is selling at Rs 82 to Rs 98 a kg, according to traders, with paddy arrivals down sharply this kharif season.
Key Facts
- In Telangana retail shops, the fine variety Kedia Jai Sriram is selling at Rs 101 a kg (Rs 10,100 a quintal), HMT at Rs 9,000 a quintal and RNR (Telangana Sona) at Rs 9,100 a quintal, according to market reports.
- The Civil Supplies meeting at Civil Supplies Bhavan in Hyderabad was chaired by Director G.V. Shyam Prasad Lal on the instructions of Commissioner M. Stephen Raveendra.
- The Commissioner has said the state holds about 28 lakh tonnes of rice, enough to meet needs until October next year, and warned of strict action, including cancelled trade licences, against hoarding, smuggling and black marketing.
- Traders selling 23 to 24 kg of rice in bags sold as 25 kg will lose their trade licences, the department has warned; Hyderabad rice traders have also been told to put up boards showing each variety, its stock and its price per kg.
- In Karnataka, the retail price of Sona Masoori has risen by about Rs 20 a kg in two months; Agriculture Department sources say kharif paddy arrivals are down 10% to 40% in different markets compared with last year.
- Union Food Minister Pralhad Joshi has said there is no shortage, with Food Corporation of India stocks enough for the next 18 to 20 months.
Why It Matters
Rice is the daily staple across south India, and fine varieties such as Sona Masoori, HMT and Jai Sriram are what most urban households in Hyderabad and Bengaluru buy for their kitchens. A rise of Rs 20 or more a kg over a few weeks hits family budgets directly, especially in the festival season when spending is already stretched. For a family of four that uses about 25 kg a month, every Rs 10 rise on a kilo adds roughly Rs 250 to the monthly bill.
The two states point to different causes. In Karnataka, traders and mill owners blame poor rainfall and the late or non-release of water for paddy in the Krishna-Tungabhadra and Cauvery basins, which has cut what farmers brought to market. In Telangana, officials have pointed the finger mainly at millers and wholesalers, saying stocks are adequate and that the rice now on shelves was bought last season at lower cost. Reports in Telangana have also linked the rise to high prices for fine paddy and slow government buying this season, which tightened what reaches open markets.
The Centre's position is that the country has enough grain. The Union Food Minister has said FCI godowns hold rice for 18 to 20 months and that exports alone do not explain the rise. Export prices have edged up too: India's 5% broken parboiled rice was quoted at $387 to $392 a tonne in the week to October 23, up from $384 to $389 the week before, and the Indian Rice Exporters Federation has said prices could rise by about $60 a tonne, though it may not last.
What the reported retail prices look like:
| Variety | Market | Reported retail price |
|---|---|---|
| Kedia Jai Sriram | Telangana | Rs 101 a kg |
| RNR (Telangana Sona) | Telangana | Rs 91 a kg (Rs 9,100 a quintal) |
| HMT | Telangana | Rs 90 a kg (Rs 9,000 a quintal) |
| Sona Masoori | Karnataka | Rs 82 to Rs 98 a kg |
Impact
Short-term: Households will pay more for fine rice through Diwali unless the warnings bring prices down. Telangana officials have said special counters to sell rice directly to consumers may be set up if conditions demand, and inspections of millers and traders are under way.
Long-term: If paddy output in Karnataka stays low after a weak monsoon, prices could remain high until the next harvest. For farmers who did get a crop, firm prices for fine paddy are a gain; for small millers and retailers, tighter stock rules and inspections mean more paperwork and scrutiny.
Who is affected: Urban and middle-class households in Telangana and Karnataka who buy fine rice in the open market; small hotels, messes and caterers whose costs rise with rice; rice millers and wholesalers now under watch; and paddy farmers in the Krishna, Tungabhadra and Cauvery basins whose crop was cut by the dry spell. Families who get free or subsidised rice through ration shops are less exposed, since that grain does not follow open-market prices.
Key Takeaway
Fine rice has crossed Rs 100 a kg in parts of Telangana and is close to it in Karnataka, and Telangana says hoarders, not a lack of stock, are to blame.
Questions and Answers
Why are rice prices crossing Rs 100 a kg in Telangana?
Fine varieties such as Kedia Jai Sriram are selling at about Rs 101 a kg in retail shops. Telangana's Civil Supplies officials say stocks are adequate and have warned millers and wholesalers against hoarding, while reports also link the rise to high fine paddy prices and slow procurement.
What is the Sona Masoori rice price in Karnataka now?
Traders say Sona Masoori is selling at Rs 82 to Rs 98 a kg, about Rs 20 a kg more than two months ago, and expect it may cross Rs 100. They blame poor rain and late water release in the Krishna-Tungabhadra and Cauvery basins.
What action has Telangana taken against rice hoarding?
The Civil Supplies department met millers and wholesalers on October 28, 2026 and warned of legal action against artificial shortages. It has threatened to cancel the trade licences of traders who sell short-weight bags, told Hyderabad traders to display stock and prices, and said special sale counters may open.
Is there a national rice shortage?
The Centre says no. Union Food Minister Pralhad Joshi has said Food Corporation of India stocks can meet the country's needs for the next 18 to 20 months, and Telangana says it holds about 28 lakh tonnes, enough until October next year.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Rohit Sharma, Markets AnalystCovers Markets Watch and more for Peepals Business. All stories by Rohit Sharma
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Rohit Sharma is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
