Govt offers par-boiled rice to boost sales under ‘Bharat rice’
To boost sales of subsidized Bharat rice, agencies like Nafed, NCCF, and Kendriya Bhandars are directed to sell par-boiled rice in southern states. Despite sluggish offloading, 1 million tonnes of rice supplied, below expectations. FCI offers 0.13 MT of par-boiled rice for retail sales. Retail price rise of rice expected to soften. Government aims to assess kharif paddy sowing before lifting export restrictions.
To boost sales of highly subsidised Bharat rice, the food ministry has asked agencies such as Nafed, National Cooperative Consumers’ Federation of India (NCCF) and Kendriya Bhandars and others to sell par-boiled rice in the southern states.
Sources told FE that the government has supplied more than one million tonne (MT) of common variety of rice under Bharat rice initiative so far which is much lower than anticipated.
Par-boiled rice available with the Food Corporation of India (FCI) will be sold under Bharat rice initiative in southern states aimed at curbing rise in prices. Sources said the FCI has offered around 0.13 MT of par-boiled rice for retail sales.
Officials said that FCI so far has received purchase indent for 1.5 MT of rice from the agencies such as Nafed, NCCF and Kendriya Bhandar for selling ‘Bharat’ rice. About one MT of grain has been sold by these agencies for distribution through retail outlets at Rs 29/kg.
In February, the government had launched sale of Bharat rice at a subsidised rate 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.
While retail prices of rice rose by 12.51% on year in April, the price rise is expected to soften in the next few months due to higher base effect. The inflation in rice prices has been in double digits since October 2022.
“There has been a concern about the sluggish pace of offloading of subsidised rice under Bharat rice initiative,” an official said.
The rice stocks at the central pool as on June 1 was 31.98 MT. Effectively, FCI holds 50.08 MT — including 18.12 MT of grain receivable from millers, four times above the buffer of 13.54 MT for July 1.
Sources said the government has to work out means to dispose of surplus rice so that storage space for the next paddy procurement season 2024-25 (October-September) could be created.
Officials said the government will assess the sowing of kharif paddy—expected to commence this month before taking a call on removing curbs on shipments. “We need to look at lifting restrictions on rice shipments as kharif crop prospects look bright,” an official said.
Last year, the government had initially banned white rice exports and subsequently imposed 20% shipment duty on parboiled rice to improve domestic supplies.
Source Link: https://www.financialexpress.com/policy/economy-govt-offers-par-boiled-rice-to-boost-sales-under-bharat-rice-3515913/
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