Govt may increase price of subsidised Bharat Rice amid signs that subsidised grain being diverted to open market

Govt may increase the price of subsidised Bharat Rice being sold at Rs 29 a kg in five and 10 kg bags amid indications that the foodgrain sold by Centre is coming back to the market. The sale of rice at subsidised price was launched in February, two months ahead of Lok Sabha elections, to keep a check on retail prices.
Currently, the average price of rice is around Rs 45 per kg as per the consumer affairs department, which collects data from across the country, and the price has increased consistently despite the govt’s intervention. Exactly a year ago, the average price of rice was Rs 40.
“Since the price difference between subsidised rice and what’s sold in the market is more than Rs 15 a kg, there is a high possibility that the subsidised rice is coming back to the market. Increasing the price seems to be a viable option. A decision will be taken soon,” an official said.
The option to increase the price of Bharat Rice is being considered amid strong indications of the Centre resuming the sale of rice from the huge excess stock held by Food Corporation of India, which it had stopped in June last year. TOI on June 28 had reported about the plan to sell rice from FCI stock to states for running their welfare schemes.

Meanwhile, the govt has decided to continue with the sale of Bharat Dal and Bharat Atta, which were introduced as a direct retail intervention by the govt to keep prices of key foodgrains under control.

This article has been republished from The Times of India.