HomeLatest NewsThe government says that the price of domestic rice may increase

The government says that the price of domestic rice may increase

New Delhi: Domestic The price of rice is showing an upward trend and is “likely to increase” due to lower kharif production forecast and an 11 percent jump in non-basmati rice exports, the food ministry said on Thursday.
The fact sheet stated that the ministry has issued detailed rationale behind recent amendments to India’s rice export policy.
The ministry also said recent changes in India’s rice export rules “have helped to keep a check on domestic prices” without reducing export availability.
Earlier this month, the government banned the export of broken rice and imposed a 20 percent export duty on non-basmati rice to increase planting of the domestic supply paddy crop this kharif season.
In its fact sheet, the food ministry said: “Domestic prices of rice are showing a rising trend and are likely to increase due to lower production forecast of around 6 million tonnes and 11 per cent increase in non-basmati rice exports compared to the same period last year.”
The retail price of rice increased by 0.24 percent for the week, 2.46 percent for the month and 8.67 percent for the year till September 19. An average growth of 15.14 percent over five years, it said
The price of domestic broken rice, which was Rs 16 per kg in the open market, has gone up by around Rs 22 in the states, it added.
Poultry and livestock farmers are the most affected by the increase in feed ingredient prices, the ministry said, as about 60-65 percent of the input cost for poultry feed comes from broken rice.
“Any increase in feedstock prices is reflected in the prices of poultry products like milk, eggs, meat etc. which increases food inflation,” it noted.
According to the ministry, the international price of Indian non-basmati rice is selling at around Rs 28-29 per kg, which is higher than the domestic price. A 20 percent export duty on non-basmati rice will reduce rice prices.
The ministry said domestic rice production is projected to decline by 6 percent to 104.99 million tonnes during the 2002-23 kharif season.
The ministry also said the ban on exports of broken rice used in poultry feed has been imposed due to the increase in exports of the grain in recent months, which has put pressure on the domestic market.
“This is a temporary measure taken for the country’s food security concerns in line with achieving the SDGs (Sustainable Development Goals).”
The changes have been made keeping in mind the need to support ethanol-blending programs that save on expensive oil imports and reduce feed prices to help the livestock and poultry sectors, which affect milk, meat prices. And eggs, it says.
Global demand for broken rice has increased due to the geopolitical situation which has affected the price movement of feed related commodities.
In the last four years, broken rice exports increased to 21.31 lakh tonnes in April-August this year as against 0.51 lakh tonnes in the previous year, the ministry added.
The government has not made any changes in the per-bold paddy policy so that farmers can get better remuneration. Similarly, there is no policy change in Basmati rice.


Most Popular