Basmati rice lovers may have to shell out 10-15 per cent more per kg in the next few weeks.
As it is, basmati consumers have had to pay 60-65 per cent more for their favourite branded product this fiscal, as compared to the last fiscal.
“The procurement season is over up to about 70-80 per cent. As per current trends, we feel prices of branded basmati products may see one more hike of about 10-15 per cent next month,” Uday Nayak, Senior General Manager (Sales and Marketing) of Radikal Food Ltd, said.
Radikal, which has a manufacturing unit in Hapur district in Uttar Pradesh, has a portfolio of about five basmati products by that name with prices ranging from Rs 125 to Rs 180 per kg.
Nayak felt that it was not so much as paddy output that has been pushing up basmati prices, but it was a combination of factors such as yield, export market conditions and the fluctuating rupee value that were actually driving up prices.
“Basmati production this fiscal may touch 2.5 million tonnes, as against 2.20 million tonnes last year. But, the price of 1121 crop, for example, is today about Rs 100 a kg, as against Rs 55-60 a year ago,” he said.
Radikal, which is expanding the capacity of its UP manufacturing facility from two lakh tonnes to 4.8 lakh tonnes, is also drawing up plans to enter the ready-to-eat food sector, with a range of rice-based products.