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Ecology & Environment
Mahesh

10/02/24 06:47 AM IST

The regulations with respect to rice prices

In News
  • The Indian government recently made it mandatory for all traders, wholesalers, retailers, and millers to declare their respective rice stocks.
Paddy Production
  • In the year 2022-2023, India produced 135 million tonnes of rice, which is 62.84 lakh tonnes higher than the previous year.
  • However, the year 2023-2024 is seeing multiple estimates coming in.
  • The southern States, which are also the major rice consuming States, are said to have suffered a drop in paddy production because of inadequate rainfall.
  • In Tamil Nadu, the production may drop by almost 30% and in Karnataka, there is almost 25% decline, claim traders and farmers.
  • However, in the north, trade sources say, rice production (basmati and non-basmati) is up 15%.
  • The Union government said that there are ample stocks with the Food Corporation of India and that Kharif crop is good.
  • For the Rabi crop, area under paddy as of February 2, is 39.29 lakh hectares compared to the 40.37 lakh hectares last year.
Measures by Govt.
  • The government has asked traders, wholesalers, retailers, chain retailers and millers to report the stocks online in the categories of broken rice, non-basmati white rice, par-boiled rice, basmati rice, and paddy.
  • It has also launched the retail sale of ‘Bharat Rice’ to general consumers at ₹29 per kg.
  • Moreover, in September 2022, the export of broken rice was banned, and a 20% duty was imposed on par-boiled rice.
  • Non-basmati white rice exports was also put under the prohibited category from July 2023.
  • The government has procured 600 lakh tonnes of paddy during the current Kharif marketing season, starting October 1, 2023.
  • With this, the central pool has 525 lakh tonnes of rice as against the annual requirement of almost 400 lakh tonnes for welfare schemes.
  • Till the end of January this year, the government has sold 1.66 lakh tonnes of rice in the open market.
Reason for price rise
  • Traders and millers cite several reasons for the higher retail rice prices.
  • The Minimum Support Price for rice has gone up in the last five years and the cost of transport, storage, etc. are also escalating.
  • In rice consuming States, the varieties consumed in large quantities have seen a drop in production this year.
  • Further, despite government measures, export of non-basmati rice has seen a multi-fold jump during the last three years compared to the previous years.
  • Non-basmati rice exports were 5.1 million tonnes in 2019-2020 which increased to 13.1 million tonnes in 2020-2021, 17.3 million tonnes in 2021-2022, and 16.1 million tonnes in 2022-2023.
  • In April-May 2023-2024, it was 2.8 million tonnes compared to the 2.7 million tonnes for the same period a year earlier.
  • The export duty levied by the government is neutralised by the high international prices, say the traders.
  • Furthermore, the rice consumed in the retail market is of the stock of last season and with a shortfall in arrivals, the prices may go up even more in the coming months.
Way forward
  • According to the millers in the northern States, there is a demand for rice for consumption, ethanol production, and cattle feed.
  • The government should prioritise sale for consumption.
  • The stock data collected by the government is expected to give an indication of the stock levels.
  • It should look at capturing data for the most consumed varieties too before deciding the future course of action.
Source- The Hindu

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