‘Bharat rice’ coming soon, to retail at discounted rate of Rs 25/kg: Report
The government is considering the introduction of ‘Bharat rice’ at a discounted rate of Rs 25 per kilogram as part of its efforts to tackle the escalating prices of essential food items leading up to the upcoming general elections next year, according to a senior official quoted in a livemint.com report.
The move follows the successful implementation of discounted rates for ‘Bharat atta’ (wheat flour) and ‘Bharat dal’ (pulses).
The proposed Bharat rice will be offered at a discounted rate and may be made available through government agencies such as the National Agricultural Cooperative Marketing Federation of India (Nafed), National Cooperative Consumers’ Federation of India Ltd (NCCF), Kendriya Bhandar outlets, and mobile vans.
Tackling cereal inflation
The decision comes amidst a significant surge in the all-India average retail price of rice, reaching Rs 43.3 per kilogram, reflecting a 14.1 per cent increase from the previous year.
“There is always one motive: curtailing prices and, thus, inflation,” said the official quoted in the livemint.com report.
At present, the government provides Bharat wheat flour and chana dal to consumers at concessional rates of Rs 27.50 per kilogram and Rs 60 per kilogram, respectively.
These products are distributed at over 2,000 retail points. The process of selling Bharat rice is expected to follow the same model as that of Bharat dal and atta.
In recent months, the government has taken several measures to stabilise the prices of essential food grains, including the ban on non-basmati rice exports and the imposition of an export floor price for basmati rice.The Food Corporation of India (FCI) has also offered rice under the Open Market Sales Scheme (OMSS) to increase its availability in the domestic market.
It may be noted that cereal prices witnessed a 10.3 per cent rise in November, contributing to an overall food inflation of 8.7 per cent, up from 6.61 per cent in October. This increase in food inflation is a significant component of the overall Consumer Price Index (CPI).
Devendra Pant, Chief Economist at India Ratings, told the publication that the subsidised food grain initiative indicates economic growth figures may not accurately represent the situation at the bottom of the income pyramid.
He noted the persistent challenges faced by lower-income groups, highlighting the structural issues contributing to inflation in cereals and pulses. Pant also expressed uncertainty regarding the rising wheat prices despite export bans and increased domestic supplies.Pant anticipates a gradual decline in the Consumer Price Index (CPI) to 4 per cent by the end of the next fiscal year, but he expects inflation to average around 5.2-5.3 per cent for the current fiscal year.
This article has been republished from India Today.