In a bid to curb escalating rice prices, the Indian government has directed industry associations to ensure an immediate reduction in retail prices. This directive comes after a meeting between the Department of Food and Public Distribution (DFPD) and leading rice industry representatives, chaired by Secretary Sanjeev Chopra. This move comes amidst concerns about profiteering and a significant gap between maximum retail prices (MRPs) and actual market prices of non-basmati rice.
Despite a good Kharif harvest, ample government stocks, and export regulations, rice prices have continued to climb. The department expressed concern over the annual inflation rate of rice hovering around 12% for the past two years, causing a burden on consumers. This concerning trend prompted the government to instruct the rice industry to take decisive actions to bring down prices and prevent profiteering. The Department of Food and Public Distribution emphasized that any attempts at profiteering would be strictly dealt with.
During the meeting, leading Rice Industry Associations were urged to engage with their members to ensure an immediate reduction in the retail price of rice. Reports indicated a notable increase in margins by wholesalers and retailers, prompting the government to recommend a moderation of these margins. Additionally, the government suggested that if there is a substantial gap between the Maximum Retail Price (MRP) and the actual retail price of non-basmati rice, it should be adjusted to a realistic level to protect consumer interests.
The FCI, responsible for maintaining rice stocks, assured the industry that an ample supply of good-quality rice is available. This rice is being offered under the Open Market Sale Scheme (OMSS) at a reserve price of Rs. 29 per kilogram. Manufacturers and traders were encouraged to consider procuring FCI rice under OMSS, selling it to consumers with a reasonable margin.
The Department of Food and Public Distribution emphasized its commitment to closely monitor and review rice prices in the country. It pledged to intervene whenever necessary to ensure the affordability of rice, a crucial component of the Indian diet. As a result, consumers can anticipate a reduction in rice prices in the near future.
