Tamil Nadu to sell fine rice at Rs 30 a kg via co-op stores as market price hits Rs 85
Representative image: none969 / Pixabay
Tamil Nadu said on October 16, 2026 it will sell fine rice at Rs 30 a kg through Amudham and cooperative stores, releasing about 25,000 tonnes as open-market prices reach Rs 75-85.
What Happened
The Tamil Nadu government said on Friday, October 16, 2026 that it will sell fine-quality rice at a subsidised Rs 30 a kilogram through Amudham departmental stores and cooperative stores across the state, as part of a set of market intervention measures to curb food inflation. Food and Civil Supplies Minister P Venkataramanan announced the move, saying about 25,000 tonnes of Grade A rice had been released for immediate distribution. Rice prices in the open market have climbed to around Rs 75 to Rs 85 a kilogram, according to reports.
Key Facts
- Fine-quality rice will be sold at Rs 30 a kg through Amudham and cooperative stores statewide.
- About 25,000 tonnes of Grade A rice have been released for the first phase.
- Open-market rice prices have reached about Rs 75 to Rs 85 a kg, according to reports.
- The first phase covers 201 cooperative stores and 49 Amudham outlets, according to one report.
- Toor dal, which costs Rs 170 to 190 a kg in the open market, is to be sold at Rs 130 a kg in cooperative stores.
- The government is also watching the prices of cooking oil and chillies, and a price monitoring committee has been set up, according to reports.
- Reports link the rise in rice prices to lower yields blamed on El Nino weather conditions.
Why It Matters
Rice is an everyday food in Tamil Nadu homes, so a jump in its price shows up quickly in family budgets. At Rs 30 a kilogram, the state's price is less than half the Rs 75 to Rs 85 being charged in the open market, a saving that adds up over a month for a family buying several kilograms a week.
The move uses the state's existing retail network. Because the rice is sold through Amudham and cooperative department stores rather than private shops, the state sets the price there directly. Selling through these outlets also gives cooperatives more footfall and a bigger role in the local food economy.
The broader backdrop is rising food prices across India. Retail inflation rose to a 21-month high in September, with onion prices doubling, and rice export prices have climbed as a weak monsoon threatens the harvest. States are responding with their own steps, such as cheaper sugar from cooperative mills in Uttar Pradesh. Tamil Nadu's package goes further by covering rice and pulses together.
The key test will be supply. Releasing 25,000 tonnes is a start, but if demand at the stores is high, stocks could run out quickly and lead to queues. How often the stores are replenished, and whether the scheme reaches smaller towns and rural areas, will decide how much it eases the pressure on household budgets.
| Item | Open-market price | State outlet price |
|---|---|---|
| Fine rice | about Rs 75 to 85 a kg | Rs 30 a kg |
| Toor dal | Rs 170 to 190 a kg | Rs 130 a kg |
Impact
Short-term: Households near Amudham and cooperative stores can buy fine rice at Rs 30 a kg straight away, cutting monthly food costs. Private traders may face pressure to hold or lower their prices.
Long-term: If the scheme continues and expands, it could steady rice prices in the state until the next harvest. It will also add to the state's subsidy bill, and its success will depend on keeping stores supplied.
Who is affected: Families across Tamil Nadu, especially lower- and middle-income households; cooperative stores and their staff; private rice traders and retailers; and rice farmers and millers, whose prices are shaped by both weather and government buying.
Key Takeaway
Tamil Nadu has started selling fine rice at Rs 30 a kg and toor dal at Rs 130 a kg through its own stores to cushion families from open-market prices that have more than doubled.
Questions and Answers
Where can I buy rice at Rs 30 a kg in Tamil Nadu?
The state is selling fine-quality rice at Rs 30 a kg through Amudham departmental stores and cooperative department stores across Tamil Nadu, starting with about 25,000 tonnes.
Why is Tamil Nadu selling subsidised rice?
Open-market rice prices have risen to around Rs 75 to Rs 85 a kg. The government announced the sale on October 16, 2026 as part of market intervention measures to curb food inflation.
Are other items also being sold cheaper?
Yes. Toor dal, which costs Rs 170 to 190 a kg in the open market, is to be sold at Rs 130 a kg in cooperative stores, and the government says it is monitoring cooking oil and chilli prices.
Who announced the scheme?
Tamil Nadu's Food and Civil Supplies Minister P Venkataramanan announced the sale of fine rice at Rs 30 a kg.
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.
Sourced and fact-checked by the Peepals Global Editorial Team
Reported, fact-checked and published by the Peepals Global Editorial Team.
