Centre directs Rice Industry Associations to ensure reduced retail price of Rice with immediate effect

In order to review the domestic price scenario of non-basmati rice, the Department of Food and Public Distribution convened a meeting on 18th December 2023 in New Delhi with the leading Rice processing industry representatives.

It was discussed in the meeting that the domestic prices of rice are increasing despite a good crop this Kharif, ample stocks with FCI and in the pipeline and various regulations in place on Rice exports. The rice industry needs to ensure that the prices in the domestic market need to be brought down to optimal levels and efforts at profiteering dealt with strictly. The Annual Inflation Rate of Rice is hovering around 12% for past two years and is cumulating over the years which is a cause of concern.

During the meeting, it was discussed that the benefit of lower prices has to be passed on expeditiously to the end consumers. The leading Rice Industry Associations were advised to take up the issue with their members and ensure that the retail price of Rice is reduced with immediate effect. There are reports of a sharp increase in the margins being availed by wholesalers and retailers which needs to be tempered. Besides, it was suggested that where there exists a wide gap between the MRP and actual retail Price, the same needs to be brought down to a realistic level in order to safeguard the interest of the consumers.

FCI informed the Rice processing industry that sufficient stock of good quality Rice is available which is being offered under OMSS at a reserve price of Rs. 29/Kg. It was also suggested that manufacturers/traders may consider lifting FCI rice under OMSS which may be sold to the consumers with a reasonable margin.

The Department of Food & Public Distribution closely monitors and reviews the prices of Rice in the country and steps in whenever any intervention is required to ensure affordability of Rice which forms an important part of the diet. The Indian consumers thus can expect to pay less for Rice in the coming days.

Source : PIB