Rice inflation around 12% over two years.
The government on Monday directed the rice industry to cut the prices of grain immediately given ample stocks.
Following a meeting with representatives of grain processing industry on the domestic price scenario of non-basmati rice, the food ministry stated that there are reports of a sharp increase in the margins being availed by wholesalers and retailers which needs to be tempered.
“The rice industry needs to ensure that the prices in the domestic market need to be brought down to optimal levels and efforts at ‘profiteering are dealt with strictly,’ according to a food ministry statement.
The ministry suggested that where there exists a wide gap between the maximum retail prices (MRP) and actual retail price, the same needs to be brought down to a realistic level in order to safeguard the interest of the consumers.
An official said in the meeting with rice millers it was informed that the domestic prices of rice are increasing despite a ‘good crop’ this kharif, ample stocks with Food Corporation of India (FCI) in the pipeline and various restrictions and duties imposed on grain exports.
Currently, FCI holds 18.24 million tonne (MT) of rice stocks, excluding 29 MT receivable from millers. The rice stock is against the buffer of 7.61 MT for January 1.
Retail rice prices rose by 11.81% in November, marginally higher from the previous month. According to an official note, the annual inflation rate of rice has been hovering around 12% for the past two years and is cumulating over the years which is ‘a cause of concern,’.
In the last few months, the government has banned exports of white rice and imposed 20% export duties on par-boiled rice to improve domestic supplies.
For rice, the government has allocated 2.5 MT of rice under open market sale scheme (OMSS) with a reserve price of Rs. 3100/quintal while the grain is being sold at Rs 2900/quintal as differential cost is covered by the price stabilization fund.
FCI has procured 56.9 MT of rice in 2022-23 season (October-September) against the requirement of around 40 MT for the Pradhan Mantri Garib Kalyan Anna Yojana annually. This season also the corporation is aiming procuring atleast 55 MT of rice.
However the corporation has sold only 0.11 MT of the rice in the open market through weekly auctions since July. To encourage higher OMSS sales, bulk buyers from next week will be allowed to bid for any quantity of rice from 1 – 2000 tonne in a weekly e-auction.
Source:financialexpress.com