Rice Traders to Commence Stock Disclosure from Next Friday: Food Secretary
Published on: February 8, 2024.
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Rice Retailers in India Asked to Disclose Stock Holdings to Regulate Prices
The Department of Food and Public has urged rice retailers, wholesalers, and processors in India to disclose their stock holdings starting next Friday. The request applies to all categories of rice, including basmati and non-basmati, parboiled, and broken rice. The goal is to monitor and regulate rice prices in the market. Retailers and processors are advised to disclose their stock on the government’s portal, specifying the type of rice they hold. If necessary, the government may consider imposing stock limits for rice.
The initiative is aimed at curbing the rising prices of rice, which have increased by 14.5% year-on-year. There are concerns that some traders may be hoarding rice, leading to supply shortages and price hikes. By compelling retailers and wholesalers to report their stock holdings, it is hoped that this practice will be deterred, and the stocks will be released into the market.
Government’s Interventions to Stabilize Rice Prices
In addition to the disclosure requirement, the government has implemented other measures to control food grain prices. The Food Corporation of India has supplied subsidised Bharat Rice to three entities: NAFED, NCCF, and Kendriya Bhandar. These entities have been advised to sell the rice at a maximum retail price of 29 rupees per kg. The government is also focusing on areas where rice prices are higher than the national average and targeting them for specific interventions to bring down prices.
It is worth noting that the export of non-Basmati white rice has been prohibited since July 20, 2022, to address domestic price concerns and ensure food security within the country. However, exports to certain countries are permitted through the National Cooperative Exports Limited. These countries include UAE, Nepal, Bangladesh, China, Cote D’Ivoire, Togo, Senegal, Guinea, Vietnam, Djibouti, Madagascar, Cameroon Somalia, Malaysia, and Liberia.
The government has also imposed a minimum floor price on exports of basmati rice to safeguard against the export of non-basmati white rice, which has been prohibited since July. Additionally, a 20% export duty on parboiled rice has been extended until March 31, 2024. This measure aims to maintain sufficient domestic rice availability and stabilize prices.
In September 2022, the Indian government temporarily banned the exports of broken rice and imposed a 20% duty on non-Basmati rice exports (excluding parboiled rice). The ban was later lifted in November after concerns about low production due to a decrease in the area under paddy crop cultivation.
By implementing these measures, the Indian government aims to regulate rice prices, ensure food security, and prevent undesirable practices in the rice market.
Source: First India
