Prices of non-premium non-basmati rice continue to rule firm despite the central government's recent instructions to the trade and industry to reduce prices. Surprisingly, rice prices have stayed firm even when the paddy harvest is underway and exports have been banned.
Traders say the main reason for high prices of non-premium non-basmati rice varieties is their lower availability in the market due to lower monthly free distribution and sale of rice (offtake) by the Food Corporation of India (FCI).
An analysis of FCI data shows monthly rice offtake for September, October and November in 2023 declined by close to 50% compared to corresponding months of 2022.
The offtake of rice in September and October 2023 was 2.838 mt and 3.098 mt,respectively, while in September and October 2022, the monthly offtake was 5.848 mt and 5.386 mt , respectively. The offtake of rice in November 2023 was 3.126 mt against 7.083 mt in year-ago month.
Trade insiders said FCI reduced sale to meet combined buffer stock norms of wheat and rice, as even the wheat stocks with the agency were inadequate. "As less rice is available to the people through FCI, they are buying rice in the open market, which has been keeping the prices high," said rice trader Rajesh Jain Paharia.
Rice inflation has been ruling in the double digits since last one year.
Source Name : Economic Times