Hyderabad: Fine-quality rice prices have seen a notable drop across wholesale and retail markets just 10 days after the state government introduced the ‘sanna biyyam’ scheme. Under this welfare initiative, the Congress-led government provides free fine rice through ration shops to white ration card holders, rapidly altering market dynamics.Chief Minister A. Revanth Reddy launched the scheme on March 30, Ugadi. Each individual listed on a white ration card is entitled to 6 kg of fine rice per month free, meaning a four-member family can receive up to 24 kg monthly. There is no cap on total quantity, as long as all family members are listed on the card.The reaction from traders has been swift. In Malakpet, rice trader B. Ravi Kumar observed that the wholesale price of popular Jai Shri Ram (JSR) brand rice declined from ₹5,450 per quintal on March 30 to ₹4,950 by April 9 — a fall of ₹500. This led to retail prices decreasing from ₹68 per kg to ₹63 per kg.Other varieties have followed suit. “The price of BPT rice dropped from ₹4,300 to ₹3,850 per quintal, and retail prices dipped from ₹58 to ₹54 per kg,” said Neredmet-based trader Bandaru Venkaiah. Traders predict even steeper drops once the government expands the scheme’s coverage from the current 25 per cent of ration card holders to the remaining 75 per cent by the end of April. “We expect a further ₹5 per kg reduction in the coming weeks,” Venkaiah added.With consumers increasingly relying on the free supply, retailers who once stocked over 100 quintals have slashed their inventories due to lower demand and decreasing prices. “We’re now buying only 20 to 25 quintals based on daily needs,” said Amberpet retailer Ch. Deepak.Farmers have also adapted to government incentives. A ₹500 per quintal bonus for cultivating fine varieties prompted many to shift away from coarse grains (doddu biyyam) to sanna biyyam during the last kharif season, a trend continuing in the current rabi cycle. As procurement ramps up, fresh stocks are expected to flood markets by May, potentially driving prices lower. “Once the new stocks arrive, prices could take another hit,” said Deepak.Telangana has around 90 lakh ration cards covering 2.85 crore people, with an additional 30 lakh cards likely to be issued after verification. This expansion could bring the total beneficiaries to over 3.1 crore — approximately 80 per cent of the state’s population.Before ‘Sanna Biyyam,’ many white card holders received coarse grains, which they typically sold for ₹10-₹12 per kg to poultry farms and breweries to fund purchases of fine rice. Now, with free fine rice readily available, retail demand for purchased rice has plummeted, accelerating the price drop.
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