The Narendra Modi-led central government has intervened in the rice market, aiming to alleviate customer burdens by slashing rice prices domestically. The government has instructed the Rice Industry Association to promptly reduce the retail prices of rice.

Sanjeev Chopra, Secretary of the Department of Food and Public Distribution, convened a meeting to assess the situation of Non-Basmati Rice prices, issuing these directives.

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Deliberation on Escalating Rice Costs

Within this meeting, Chopra urged the industry to take immediate measures to stabilize and rationalize domestic rice prices. The Press Information Bureau (PIB) statement highlighted the need for industry associations to address this concern within their members’ circle and enforce a rapid reduction in the retail price of rice. Despite a promising Kharif crop, ample Food Corporation of India (FCI) reserves, and the embargo on rice exports, the escalating prices of non-Basmati rice in the domestic market remain perplexing.

Stock Quality vs. Market Pricing

While the government prohibits the export of Gaur-Basmati rice, the persistent surge in prices has raised significant alarms. The annual inflation rate for rice has surged by over 10% in the past two years. The government has adopted a more stringent approach to curb the ongoing rice price surge.

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Government Stock Availability

The government underscored its possession of high-quality rice stocks available under the Open Market Sales Scheme (OMSS) at Rs 29 per kg. However, the retail market continues to trade rice at rates ranging from Rs 43 to 50 per kg.

Export Ban and Increased Export Duty

In a bid to sustain domestic rice supply and alleviate prices, the Modi government enforced a ban on non-Basmati rice exports in July 2023. Additionally, export duties were raised, coupled with an October decision to elevate the minimum export price of rice to $950 per ton.

Heightened Concerns and Government Warning

Despite these measures, the persistent rice price surge has raised substantial concerns. During the meeting, a cautionary note was issued, warning against profiteering and ensuring that stringent government actions will be taken if observed.