The Tamil Nadu subsidised rice scheme will offer fine-quality rice at ₹30 per kg after open-market prices climbed to ₹75–₹85 per kg. Announced on October 16, 2026, the initiative aims to ease the burden of rising food prices on households across the state.
Food and Civil Supplies Minister P Venkataramanan said the price increase was linked to the impact of El Niño on agriculture, regional supply shortages and global economic factors. The subsidised rice will be distributed through Amudham departmental stores and cooperative outlets.
25,000 Tonnes of Rice in First Phase
In the first phase, the government has released 25,000 metric tonnes of fine-quality raw and parboiled rice for distribution through 201 cooperative stores and 49 Amudham outlets.
Consumers can purchase up to 5 kg, depending on their requirements, with distribution scheduled to begin over the weekend. The state is also procuring one lakh metric tonnes of Grade A rice to strengthen supplies.
The government said rice distribution through fair-price shops would continue without interruption. Stocks of sugar, palm oil and pulses have also been secured for the next three months.
Toor Dal at ₹130, Onions at ₹35 per Kg
The government is expanding its subsidised food sales to include other essential commodities. An initial stock of 500 metric tonnes of toor dal is being procured from the National Agricultural Cooperative Marketing Federation of India (NAFED).
The planned retail prices include:
- Toor dal: ₹130 per kg
- Onions: ₹35 per kg
- Boiled Ponni rice: ₹60 per kg
- Urad dal: ₹140 per kg
- Garlic: ₹240 per kg
- Coriander: ₹240 per kg
- Chilli: ₹330 per kg
Toor dal will be sold through 250 Amudham and cooperative outlets.
Government to Monitor Prices and Hoarding
The Tamil Nadu government plans to establish a price monitoring committee to track market supplies and fluctuations. Officials have also warned of strict action against hoarding and black marketing of essential commodities.
According to the government, nearly 2.29 crore family cards cover around 7.01 crore beneficiaries receiving essential food items in the state.
Traders typically source fine rice in bulk from Andhra Pradesh, Telangana and Karnataka. Lower crop yields attributed to El Niño have reportedly reduced supplies, contributing to the recent price surge.
The Department of Food and Consumer Protection's Price Monitoring Cell tracks the prices of 67 essential commodities every week. The government has said it will consider further interventions if necessary to stabilise prices and protect consumers.
For official updates, visit the Tamil Nadu government website.
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