Thanks to the ban on broken rice exports, retail rice prices remain in control.
The government stated on Friday that retail rice prices in the domestic market will remain under control thanks to a ban on broken rice exports and adequate supplies in the godowns. The food ministry’s remark came a day after its factsheet hinted at pricing pressure and increased rice prices in the near future.
According to a statement issued by the food ministry on Friday, ‘the govt has effectively ensured domestic food security, availability of domestic feed for poultry and cow feed while keeping control on inflation as well as domestic rice prices.’
With effect from September 9, the Centre prohibited the export of broken rice and levied a 20% export duty on non-basmati rice. ‘The domestic price of rice is stable, and prices will remain firmly under control.’
Due to a surplus of rice, the domestic price of rice will be kept under control in comparison to the international market and neighbouring countries where prices are relatively high.
Paddy’s minimum support price (MSP) has been raised by 5.15% to Rs 2,040 per quintal in 2022-23, up from Rs 1,940 in 2021-22.
According to the ministry, all-India domestic wholesale prices of rice and wheat fell by 0.08% and 0.43%, respectively, last week.
According to data compiled by the department of consumer affairs, the average retail price of rice on Friday was Rs 37.65 per kg.
The export embargo was implemented, according to the ministry, to ensure the appropriate availability of broken rice for consumption by the domestic poultry industry and other animal fodder, as well as to create ethanol for the successful implementation of EBP (Ethanol Blending Programme).
The government has made no adjustments to its stance on par-boiled rice and basmati rice. Par-boiled and basmati rice account for approximately 55% of total rice exports from India.
‘As a result of India’s considerable share of global rice export, farmers will continue to receive good remunerative rates, and dependent or vulnerable nations will have adequate availability of par-boiled rice,’ the ministry stated.
Around 217.31 lakh tonnes of rice are in government buffer stock, which is more than the buffer stock norm, and 610 lakh tonnes will be purchased in the 2022-23 marketing season, which begins in October.
‘The country’s buffer supply is more than enough to meet the demand for the public distribution system,’ it stated.
India, which controls 40% of the global rice trade, exported 21.23 million tonnes of rice in fiscal 22021–22 up from 17.78 million tonnes the previous year. 9.35 million tonnes of rice were shipped between April and August of this fiscal year.
Because of the current geopolitical environment, the worldwide price of rice was profitable, resulting in higher rice exports than the previous year, according to the ministry.
The agriculture ministry provided the first advance projections for the Kharif season of the 2022-23 crop year (July-June) earlier this week, predicting that rice production may fall 6% to 104.99 million tonnes. Due to insufficient precipitation in some regions of the country, paddy acreage is down by more than 5% so far. PTI ABM ABM MJH MJH