Context- The Union government has recently announced retail sale of rice at Rs 29 per kg under ‘Bharat Rice’ through three cooperatives.
Background
- In 2023, the Union government, so as to test domestic rice prices and ensure domestic food security, had prohibited the export of white (non-basmati) rice and levied a 20% export duty on par-boiled rice.
- The government’s decision to decrease rice exports was brought about by escalating domestic prices and the desire to ensure adequate supply for the country.
- Most industry experts anticipate that the government will not ease restrictions before the general election, which is scheduled for April-May 2024.
- The fall in rice production for the duration of the 2023-24 kharif season, influenced by El Nino-induced dry weather conditions, further complicates the supply situation.
- Despite trade curbs, local rice prices have remained sturdy, leading the government to issue warnings to retailers.
India’s Rice Exports
- India is the biggest rice exporter globally with a 45% share in the world rice marketplace.
- Overall rice exports in April-May of 2023 were 21.1% higher compared with the same period last financial year..
- In May 2023 itself, export of Basmati rice was 10.86% higher than its exports in May 2022.
- The shipment of non-Basmati rice has been on the rise for the last 3 years and the export of Basmati rice in 2022-2023 was higher than the previous 12 months.
- The records shared by the government says that until August 17 this year, total rice exports (except damaged rice) had been 15% greater at 7.3 million tonnes as against the 6.3 million tonnes during the corresponding period last year.
- Thailand expects almost 25% lower production in 2023-2024; Myanmar has stopped uncooked rice exports; and it’s far stated to be low in Iraq and Iran as nicely.
Union Government’s Intervention Measures
- Union Food Secretary Sanjeev Chopra stated that the retail costs had increased by 14.51% over the past year.
- Worried over the boom in rice costs, the Centre has requested buyers/wholesalers, shops, huge chain outlets and processors/millers to claim their inventory function of rice and paddy each Friday.
- The Union Food Secretary said the decision is to manage the overall food inflation and to prevent unscrupulous speculation.
- Further, to test inflationary trends, the Centre has determined to start retail sale of ‘Bharat Rice’ to trendy clients.
- In the first phase, 5 lakh tonnes of rice have been allotted for retail sale under the ‘Bharat Rice’ logo through 3 agencies, the NAFED, NCCF and the Kendriya Bhandar.
- The retail price for sale of Bharat Rice to standard clients will be ₹29 per kilogram.
- Rice could be offered in 5 kg and 10 kg bags.
- Sufficient stock of precise good quality rice is available with the FCI, that’s being presented to investors/wholesalers under the open marketplace sales scheme at a reserve price of ₹29/Kg.
Source: Indian Express
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