News Capsule: Indian Domestic Rice Prices Rise Over 10%
08-Aug-2026 12:24 PM
News Capsule: Indian Domestic Rice Prices Rise Over 10%
★ The demand-supply gap, deficient monsoon and higher paddy prices have strengthened the rice market.
★ The shortage is more visible in premium varieties such as Sona Masuri, Ponni and Masuri, with its impact also being felt in broken rice. In West Bengal, Swarna rice prices have increased from ₹30 to ₹34 per kg, while old white rice in North Chennai has reached up to ₹1,900 per 26-kg bag.
★ The Centre’s decision to raise the MSP for common paddy for 2026-27 from ₹2,369 to ₹2,441 per quintal has also supported prices. As of August 7, the monsoon was 11% deficient, while arrivals of the zaid and rabi crops have ended and fresh kharif arrivals are expected only after October.
★ The government’s third advance estimate projects record rice production of 154.02 million tonnes. However, limited immediate market availability is keeping prices under pressure.
★ Rice prices could soften ahead if government sales under the OMSS gather pace.