Govt to hit retail market with ‘Bharat rice’
By Sandip Das
The government is likely to start sale of subsidised grain through retail outlets under the Bharat rice initiative soon. Sources told FE that around 0.45 million tonne (MT) lakh tonne of non-fortified rice available with the Food Corporation of India (FCI) will be offered for retail sales by agencies such as farmers’ cooperative Nafed, National Cooperative Consumers Federation (NCCF) and Kendriya Bhandars.
Currently, the scope of the “Bharat rice’ initiative including pricing and pack sizes for retails sales is being finalised. An official said a formal launch of Bharat rice is expected in a few days. The plan is designed to cool the retail prices of mass consumption rice varieties, which have remained stubbornly high despite curbs on certain exports and open market sales by the FCI.
At present, the government is selling chana dal and atta (flour) at subsidised rates of Rs 60/kg and Rs 27.5/kg respectively under Bharat Dal and Bharat Atta initiatives.A food ministry said that the domestic prices of rice are at elevated levels despite a record output, ample stocks with FCI in the pipeline and various restrictions and duties imposed on grain exports.
“We are examining the issue of high rice prices, hopefully Bharat rice initiative may have some impact on inflation,” an official said. There has been a lukewarm response to open market sale of surplus rice to bulk buyers by the Food Corporation of India (FCI) at subsidised rate of Rs 2900/quintal, below the economic cost of grain for 2022-23 at Rs 3,537/quintal.
Since July, 2023 FCI could sell only 0.15 MT of rice through weekly e-auctions so far against an allocation of 5 MT for the current year. Retail rice prices rose by 12.33% in December and rice prices are at an elevated level since October 2022. This is despite the government’s attempt to sell surplus rice in the open market from the FCI stock.
The government has banned exports of white rice and imposed 20% export duties on par-boiled rice last year to improve domestic supplies. Currently, FCI holds 19.02 MT of rice stocks, excluding 37 MT receivable from millers. The rice stock is against the buffer of 7.61 MT for January 1.
This article has been republished from The Financial Express.