Govt hikes Bharat rice & atta prices, abolish cash transactions
The Indian government has raised the retail prices of subsidized Bharat rice and wheat while eliminating cash payments to curb diversion. Bharat Atta prices have increased by 9% to ₹30/kg, and Bharat rice will now be sold at ₹34/kg, up 17%. The government will provide subsidies of ₹2.35/kg for Atta and ₹2/kg for rice. These changes aim to stabilize prices and ensure that commodities reach consumers effectively.
While the government has revised upward the retail prices of subsidised Bharat rice and wheat and extended sales of grain aimed at curbing rise in prices, it has abolished the practice of cash payments for sale of the commodities by agencies aimed at curbing diversion.
Sources told FE that while prices were being revised keeping into consideration the availability and prices of essential commodities, the food ministry has urged agencies such as farmers’ cooperative Nafed, NCCF and Kendriya Bhandars against accepting cash for transactions to track that commodities meant for the consumers is not diverted.
The retail price of ‘Bharat Atta’ has been hiked by 9% to Rs 30/kg from the previous rate of Rs 27.5/kg, while ‘Bharat rice’ would be sold at Rs 34/kg, an increase of more than 17% than the current rate, according to an official communication.
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From the current month onwards, the government will offer a subsidy of Rs 2.35 per kg for ‘Bharat Atta’ which would mean that the effective issue price for such ‘atta’ for Food Corporation of India (FCI) is Rs 20.65/kg.
For ‘Bharat rice’ the government will provide a subsidy of Rs 2/ kg, which would make the effective issue price of around Rs 22/kg to FCI. The subsidy incurred would be financed from the corpus of the Price Stabilisation Fund for which the union budget has made a provision of Rs 10,000 crore for the current fiscal.
Around 3 million tonne (MT) of rice and wheat was alloted from Food Corporation of India stock last year for Bharat rice and atta initiative to agencies such as Nafed, NCCF, Kendriya Bhandars.
In February, the government had launched sale of Bharat rice at a subsidised rate of Rs 29/kg in 5 and 10 kg packs which according to the food ministry was aimed at increasing supplies in the market at affordable rates and the step would help in continued moderation of prices.
In November last year, Bharat wheat flour (Atta) sales were launched through retail channels at a rate of Rs 275 per 10 kg bag. Sources told FE that about 1.5 MT each of rice and wheat have been sold under the Bharat brand.
Source Link : https://www.financialexpress.com/policy/economy-govt-hikes-bharat-rice-amp-atta-prices-abolish-cash-transactions-3566215/
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