The popular Andhra Rice variety Jaya, which was the flavour of Kerala since 2001, is slowly being edged out of the market by rice varieties from West Bengal and Tamil Nadu.

The Jaya variety of rice is known for its taste and low cooking time.

In an attempt to retain their dominant position in Rs 500-crore Kerala rice market, the mills from Andhra Pradesh have been offering the ?jaya? variety of rice at Rs 1000 per quintal discount. This has resulted in fall of ?Jaya? variety of prices from Rs 24 a kg to Rs 19 a kg.

The new entrants into rice market are West Bengal?s IRRI-1001 variety, Tamil Nadu? ?Rose? and round-grained CO grades Bhagwathy, Kanchi, Amaravati, among others. ?It?s difficult to rebuild a taste preference, once there is a huge substitution effect. Hence the desperate go to forgo all margins for the time being,? said Arumukhom Pillai, a rice retailer at Kollam market.

Kerala?s annual rice consumption is estimated to be around 44 lakh tonne. However it produces less than 10 lakh tonne. Earlier, the state?s public distribution system used to supply about 24 lakh tonnes.

But, recently, the Union government trimmed down Kerala?s allocation under PDS as much as 88% of Kerala?s APL quota, which resulted in entry of private players into the rice market.

It is believed that it was also Andhra government?s levy on its rice mills to build stocks for its Rs 2 per kilogram scheme targeted at the poorest section of population, initially created ?Jaya? shortages in the Kerala market.

As Andhra millers realised their supply constraints, the Kerala government brought in 2,476 tonne of rice from West Bengal, bearing Rs 4 crore transportation costs. Bought at Rs 13.25 per kilogram from Bardhaman in West Bengal, it is sold through Kerala government?s grocery outlets like Consumerfed at Rs 16 per kilogram.

Bengal rice has been consistently gaining grounds in Kerala rice trade.

?We?ll promptly go for another consignment of 2,500 tonne of Bengal rice, if the open market rice price flutters further,? said G Sudhakaran, Kerala co-operatives minister.

Sources in Chalai market in Thiruvnanthapuram told FE that enquiries for Andhra?s Jaya are now replaced by those for Tamil Nadu ?Rose? grain sold about Rs 5 per kg less than the price of Andhra rice. The round-grained CO rice grades sell at Rs 13-14 per gkg at retail.