The govt also directed traders to disclose rice/paddy stock, as part of its efforts to control prices that have risen by around 15 per cent in the last one year
Amidst the current scenario, it has been announced by the Central authority that ‘Bharat Rice’ will be introduced into the consumer market at the price of Rs 29 per kilogram, effective from the forthcoming week. This initiative aims to alleviate the financial burden on the populace, especially in light of the recent surge in prices, which have escalated by approximately 15% over the past twelve months.
During a formal announcement session, Union Food Secretary Sanjeev Chopra expressed optimism regarding the anticipated efficacy of these strategies, coupled with the imposition of various export constraints, in mitigating the inflationary pressures.
In a bid to dispel any speculative conjectures circulating within the market, he unequivocally stated that there are no immediate plans to lift the existing restrictions on rice exports. These constraints will remain in force until a tangible reduction in prices is observed.
Chopra emphasized, “The foremost priority for the government presently is to stabilize the pricing of rice,” underscoring that, with the exception of rice, prices of essential food commodities remain under control.
He elaborated on the surge in rice prices, citing an increase of 14.5% in retail and 15.5% in wholesale markets over the preceding year.
To address the price surge, Chopra outlined the government’s decision to introduce ‘Bharat Rice’ at a subsidized rate of Rs 29 per kilogram through the cooperative efforts of the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED), National Cooperative Consumers’ Federation of India Ltd (NCCF), and the retail chain Kendriya Bhandar. Additionally, e-commerce platforms will be engaged in the distribution of Bharat Rice.
‘Bharat Rice’ will be made available in 5kg and 10kg packages starting next week, with an initial allocation of 5 lakh tonnes for retail sale.
Currently, the government is already retailing Bharat Atta at Rs 27.50 per kilogram and Bharat Dal (chana) at Rs 60 per kilogram.
Chopra outlined further directives, stating, “All entities holding rice stocks must declare their inventory on the food department’s portal.” This mandate encompasses retailers, major retail chains, wholesalers, and processors, who are required to disclose their inventory across various categories such as broken rice, non-basmati rice, parboiled rice, and basmati rice.
He asserted that this measure is aimed at curbing hoarding activities within the rice market.
Despite the sufficient stock levels of rice maintained in the government’s buffer and the domestic markets, prices continue to surge, necessitating proactive measures.
Chopra highlighted the government’s multifaceted approach to export regulations, including restrictions on shipments of non-basmati white rice and broken rice, a 20% export duty on parboiled rice, and a minimum export price of USD 950 per tonne for basmati rice.
However, despite these efforts, the Open Market Sale Scheme (OMSS) has yielded limited success in stabilizing prices.
When questioned about potential measures to further regulate rice prices, Chopra asserted that all options remain under consideration, including imposing stock limits or banning par-boiled rice exports.
Addressing market speculations, Chopra reiterated the government’s stance on export regulations, affirming that there are no imminent plans to revise or lift existing restrictions.
He emphasized the importance of this communication, particularly to stakeholders holding stocks for export purposes, indicating that current regulations will remain in effect for the foreseeable future.
Additionally, the ministry mandated the declaration of rice/paddy stock positions by traders, wholesalers, retailers, major retail chains, and processors/millers across all states and union territories, as part of efforts to manage food inflation and prevent speculative activities.
These directives extend to various categories of rice, including broken rice, non-basmati white rice, parboiled rice, basmati rice, and paddy.
The ministry previously announced measures such as the prohibition of broken rice exports since September 2022, imposition of a 20% export duty on non-basmati rice since September 8, 2022, and subsequently, the prohibition of non-basmati white rice exports since July 20, 2023.
Regarding basmati rice, contracts for exports valued at USD 950 per tonne or higher are registered for the issuance of Registration-cum-Allocation Certificates (RCAC). Additionally, a 20% export duty on parboiled rice has been imposed until March 31, 2024.
These measures collectively aim to mitigate the escalating trend in rice prices within the domestic market.