Price Of Non-Basmati Rice To Be Reduced With Immediate Effect: Centre

The Central Government, on December 18, directed the rice industry associations to reduce prices of non-basmati rice in the country. Sanjeev Chopra, secretary of the Department of Food and Public Distribution, held a meeting with key representatives of the non-Basmati rice processing industry in New Delhi. He directed the representatives to review the retail rice prices and take measures to bring them down to optimal levels. Industry associations have also been instructed to take up this issue with their union members. The Press Information Bureau stated the name of associations that have been instructed to ensure that the retail price of rice is reduced with immediate effect.

Other pertinent issues were raised in the meeting as well. They were also asked why the prices of non-Basmati rice are increasing in the domestic market, despite a good Kharif crop. It was also questioned whether there are adequate stocks with the Food Corporation of India (FCI). Rice exports have also been banned. The annual inflation rate of rice has seen an upward trend of around 12 percent for the past two years. It has become a cause of grave concern as well. Another cause of concern that was discussed in the meeting was the enormous increase in profit margin. This profit margin has increased between wholesalers and retailers, and there is an urgent need to control it. The meeting also emphasised the need to deal strictly with profiteering. It also suggested that there is a wide gap between the maximum retail price (MRP) and the actual retail prices. It was pointed out that this gap should be reduced to bring it down to the lower level to protect the interests of consumers.

The FCI has informed the rice processing industry that there is an abundant stock of good quality rice available. It is being sold under the Open Market Sale Scheme (OMSS) at a reserve price of Rs 29 per kg. Under the Open Market Sale Scheme, the Food Corporation of India sells surplus stocks of wheat and rice. Traders can procure rice from the FCI under the Open Market Sale Scheme. They can then sell it to consumers with a reasonable profit margin.