Now Reading: Telangana rice price cap fails to sway Hyderabad traders
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Telangana rice price cap fails to sway Hyderabad traders
The Story in Brief
The Telangana government's October 31 order capping maximum retail prices for three fine rice varieties has not taken effect across Hyderabad, with most traders still selling above the notified rates despite civil supplies raids. BPT/KNM rice was fixed at Rs 66 per kg, RNR/Telangana Sona at Rs 74, and HMT/JSR at Rs 79 per kg.
A wholesale trader told The Hans India that millers were not supplying rice at prices enabling wholesalers to follow the government rates, and said millers should sell at least Rs 5 to Rs 20 per kg below the notified price. A retailer said traders would not sell existing stocks bought at higher prices at the capped rates, but would comply once they received fresh cheaper stock.
A consumer in Ramnagar said he bought HMT rice at the government-fixed Rs 79 per kg on Monday, but noted that other varieties not covered by the order remained expensive. Compliance is limited in most localities, with only some shops displaying the mandated price boards.
Indian Opinion Analysis
The price cap order has exposed a supply chain standoff: millers and wholesalers are unwilling to absorb the margin squeeze, leaving retailers to sell old high-cost stock at a loss if they comply. Consumers get relief only in pockets where fresh stock has reached retail. The government's enforcement raids have not altered the arithmetic. Until millers align their ex-mill prices with the caps, compliance will remain patchy and consumers will face varying rates across the city.
Source: thehansindia.com
This brief was synthesised by AI from the source linked above. Methodology and corrections.
