With a major chunk of the area under paddy cultivation beng converted into residential plots, the South Indian state of Kerala, once known for its paddy fields and coconut plantations, is now facing severe shortage of rice with prices going up by around Rs 4 per kg.

Paddy supplies in the state  have dropped by 60-70 % as rice companies are finding it difficult to fulfil the retailers’ demand for branded rice.

Adding to the problem, sever shortage of railway wagons has also hit the movement of rice and paddy and the supply through railways has dropped by 40-50 % in the last 3-4 months.