The Indian government is gearing up to introduce ‘Bharat’ rice at reasonable prices, directly reaching consumers through cooperatives like NAFED, NCCF, and Kendriya Bhandar. This initiative aims to counter soaring prices amidst failed attempts to coax rice millers into price reductions.
Stock Declarations and Market Movements
Under the Essential Commodities Act, traders are supposed to declare rice stocks weekly, starting February 9. A potential stock limit may follow, aligning with the approach taken for wheat. If domestic prices persist, the government hints at a likely ban on parboiled rice exports. Rice prices have surged 14.5% in retail and 15.5% in wholesale markets year-on-year.
Government’s Diverse Strategies To Curb Rising Prices
Union Food Secretary affirms that “all options are open” to curb rising prices, including potential stock limits. He denies rumours of a complete parboiled rice export ban and emphasizes the government’s commitment to price control.
Impacts of ‘Bharat Rice’ on the Market
The government allocates 0.5 million tonnes of rice to cooperatives for retail sales, with plans for increased releases based on demand. E-commerce platforms are enlisted to widen the reach of ‘Bharat Rice.’ The focus is reducing broken grains in FCI-held rice and promoting market availability for ethanol production.
Export Restrictions And Trade Policy
Despite concerns, the government clarifies that export restrictions on rice remain intact. A stock declaration mechanism aims to signal entities to release stocks, alleviating market pressure. In the middle of the various export regulations, the practical impact of export duty on parboiled rice raises questions about market equilibrium.
Insights from Trade Experts
Foreign trade policy experts analyze export trends, noting a decline in parboiled rice exports after the imposition of export duty. The experts highlight global market forces sustaining an effective equilibrium against export duty. The President of The Rice Exporters Association attributes rising prices to supply-side issues.
Conclusion
India’s endeavours to stabilize rice prices reflect a commitment. This commitment is to ensure affordability and accessibility for consumers. In the middle of these market fluctuations and export regulation changes, the introduction of ‘Bharat’ rice and diverse policy measures stand as pillars of resilience. With transparency in stock declarations and strategic allocation, the government aims to guide through turbulent waters.
Insights from trade experts shed light on the convoluted balance of global forces. Together, these efforts highlight India’s proactive stance in managing price surges and promoting market stability.
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