Hyderabad: Rice prices in Telangana have surged despite the state being one of India’s largest paddy producers, squeezing household budgets and raising questions over market dynamics in a rice-surplus state. Wholesale prices of Sona rice have jumped by more than 65% over the past year, while rice inflation has accelerated sharply, turning a staple food into a growing burden for consumers.




Wholesale prices of Sona rice in Telangana rose 65.4% year-on-year, from Rs 2,068 per quintal in Oct 2025 to Rs 3,419 in Oct 2026. During the same period, rice inflation in the state climbed from around 4% in April to 13% in Sept, increasing concerns over affordability for millions of households that depend on rice as their primary food grain.




Telangana, along with Andhra Pradesh and Karnataka, is among the biggest rice-consuming regions in southern India. While strong consumer demand may be contributing to the upward pressure on prices, experts say the sharp increase warrants a closer examination of several factors, including market arrivals, stocks and trading practices.




Data from the Union department of consumer affairs shows that wholesale Sona rice prices were relatively stable through mid-2025. Prices stood at Rs 1,990 per quintal in June 2025 and Rs 1,953 in July before rising to Rs 2,063 in Sept and Rs 2,068 in Oct.




The upward trend gathered pace thereafter, with prices increasing to Rs 2,475 in Nov and Rs 2,677 in Dec. After remaining at Rs 2,599 in Jan 2026, prices dipped to Rs 2,325 in Feb and Rs 1,970 in March. However, the decline proved temporary. Prices rebounded to Rs 2,166 in April, Rs 2,386 in May and Rs 2,724 in June, before touching Rs 3,419 in Oct. Data for Aug and Sept was not available in the series.




The steep rise is beginning to take a visible toll on household finances. “We are a family of six and need at least 25 kg of rice every month. With prices rising, the cost of buying rice is adding considerably to our monthly bills,” said Sama Chandrika Reddy , a Hyderabad resident.




Agricultural economists point out that the price trajectory in Telangana contrasts with trends in some other rice-producing states.




Samarendu Mohanty , co-author of a Professor Jayashankar Telangana Agricultural University policy paper on agricultural market regulation, said Odisha recorded a good kharif crop this year, but rice prices there have not increased as sharply as in Telangana.




The study, titled ‘Price Behaviour, Market Infrastructure and Farmers’ Awareness on APMC Act in Telangana,’ identified exploitative trading practices as a major constraint in agricultural marketing. It recommended strengthening market infrastructure, improving connectivity among key agricultural markets to reduce price volatility, and providing real-time price information through agricultural universities and market intelligence centres.




Experts also point to weather-related factors. While El Niño-linked uncertainty may be influencing production expectations and market sentiment, its role in the current price surge needs to be assessed alongside supply trends, stock positions and the functioning of agricultural markets.




For consumers, however, the impact is immediate. In a state that produces a surplus of paddy and is heavily dependent on rice as a staple, the sharp escalation in prices is adding fresh pressure on already stretched household budgets.