Lower non-basmati price, Government of India tells rice units

New Delhi, December 19

In a bid to address the surge in rice prices, the Government of India has issued a directive to the rice industry associations, telling them to promptly lower the retail price of non-basmati rice.

To assess the current domestic price scenario of non-basmati rice, Sanjeev Chopra, Secretary of the Department of Food and Public Distribution, convened a meeting of key representatives from the rice processing industry.

Discussions during the meeting revealed a concerning trend of escalating domestic rice prices, despite favourable conditions such as a robust kharif crop, ample stocks with the Food Corporation of India (FCI) and regulatory measures on rice exports. The imperative measure for the rice industry is to take immediate steps to bring down domestic prices to optimal levels and strictly address any profiteering practices. The annual inflation rate of rice has been persistently around 12% for the past two years, raising significant concerns.

Recognising the urgency of passing on the benefits of lower prices to end consumers, the meeting emphasised the need for leading rice industry associations to engage with their members. They are tasked with ensuring an immediate reduction in the retail price of rice. Reports have indicated a notable increase in margins by wholesalers and retailers, necessitating measures to curb such practices. Additionally, it was proposed that in cases where a substantial gap exists between the MRP and the actual retail price, corrective action should be taken to align them realistically.