Indian Government Launches Bharat Rice Initiative to Tackle Rising Domestic Rice Prices

The Indian government is set to launch the Bharat Rice initiative to combat rising rice prices. This scheme will enable the sale of subsidized rice at Rs 29 per kilogram through various retail outlets. A formal announcement is expected in the coming days. The initiative aims to reduce the retail prices of widely consumed rice varieties, which have remained high despite export restrictions and the Food Corporation of India's (FCI) efforts to sell rice in the open market.

Despite a record rice production and considerable stockpiles with FCI, domestic rice prices have stayed elevated. The Bharat Rice initiative is hoped to impact the market and lower these high prices. Currently, the government offers chana dal and atta at subsidized rates under similar initiatives, Bharat Dal and Bharat Atta. Additionally, FCI has sold over 7 million tonnes of wheat to bulk buyers at a reduced rate, attempting to balance the market.

The initial phase of the Bharat Rice initiative will see about 0.45 million tonnes of non-fortified rice from FCI stocks being sold for retail. Agencies such as Nafed, NCCF, and Kendriya Bhandars will handle the sales. The response to FCI's open market sale of surplus rice to bulk buyers at Rs 2900 per quintal, which is below the economic cost, has been tepid. Only 0.16 million tonnes have been sold so far against the 5 million tonnes allocated for the current year.

The government has also taken other measures to stabilize rice prices, including banning the export of white rice and imposing a 20% duty on par-boiled rice exports. As of now, FCI holds 19.54 million tonnes of rice stocks, in addition to 37 million tonnes due from millers, well above the buffer norm of 7.61 million tonnes set for January 1. Food Minister Piyush Goyal noted that schemes like Bharat Atta and Bharat Dal, along with interventions in the onion and tomato markets, have been effective in moderating essential commodity prices.