In a first, govt directs rice sector to cut domestic prices
New Delhi: The Union government on Monday directed rice industry associations to
ensure domestic prices of non-basmati rice are brought down to optimal levels and
profiteering is dealt with strictly.
“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 dealt with strictly,”the
government said in an official statement on Monday.
The directive has been issued after the food ministry came to know that rice is sold at
₹43 per kg to ₹50 per kg in the retail market.
The government in July had banned exports of non-basmati white rice and imposed a
20% export duty on parboiled rice to improve domestic availability and affordability of
the commodity. Besides, the Centre set a minimum export price of $950 per tonne for
basmati in October to discourage export of the premier rice variety.
“It was discussed in the meeting that the domestic prices of rice are increasing despite a
good crop this kharif, ample stocks with Food Corporation of India (FCI) and in the
pipeline. The prices have increased despite various regulations in place on rice exports,”
the government statement said.
The food ministry said annual inflation rate of rice is near 12% for the past two years
which is a cause of concern.
The need to quickly pass on the benefit of lower prices to end consumers was discussed
at the meeting.
Leading associations have been advised to tell their members to ensure that the retail
price of rise is reduced forthwith.
“There are reports of a sharp increase in the margins being availed by wholesalers and
retailers which needs to be tempered,”the statement said.
Besides, it was suggested that where there exists a wide gap between the 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, it said.
Disagreeing with the government’s diktat, grain merchant Naresh Gupta, who was also
in the meeting, said, “We have requested the government to reduce the reserve price of
rice to ₹2700 per quintal as the rice procured through OMSS has only a few takers.”
“The government needs to keep a tab on retail rice sellers as they are selling the rice at
₹43 per kg to ₹53 per kg after levying Goods and Services Tax (GST) on the food item,”
In recent months the government has also cleared exports of 2.77 million tonnes (mt) of
non-basmati white rice to 14 key Asian and African nations, including Singapore, Nepal,
Malaysia and the Philippines.
Source Link :- https://www.livemint.com/industry/agriculture/in-a-first-govt-directs-rice-sector-to-cut-domestic-prices-11702917793634.html
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