Piyush Goyal Launches Subsidized 'Bharat Rice'
Bharat Rice: The Indian government, led by Food Minister Piyush Goyal, has taken a proactive step to control rising rice prices by introducing subsidised 'Bharat rice' at Rs 29/kg. This initiative aims to make the staple grain accessible to consumers in affordable five and 10 kg packs, available at over 18,000 outlets and mobile vans nationwide.
Background and Motivation:
To counter escalating prices, the government has partnered with Kendriya Bhandar, Nafed (farmers' cooperative), and the National Cooperative Consumers Federation, along with the digital commerce platform ONDC. The move comes amidst concerns over the high retail prices of commonly consumed rice varieties despite measures such as export restrictions and controlled market sales by the Food Corporation of India (FCI).
Subsidy and Funding:
The 'Bharat rice' initiative incurs a subsidy of Rs 5.4/kg, supported by the Price Stabilisation Fund (PSF) under the Department of Consumer Affairs. Notably, the government has allocated Rs 27,500 crore since 2014-15 from the PSF to manage retail interventions and procurements, preventing inflation in essential commodities like pulses, grains, and vegetables.
Implementation and Impact:
Launching mobile vans for the sale of subsidised rice, Minister Goyal expressed confidence in the initiative's ability to provide relief to consumers. The plan involves utilizing 0.45 million tonnes of non-fortified rice stock from the FCI in the initial phase. The overall aim is to cool the retail prices of mass consumption rice varieties.
Current Initiatives and Challenges:
The government, already selling chana dal and atta (flour) at subsidized rates under Bharat Dal and Bharat Atta initiatives, faces challenges such as the lukewarm response to the open market sale scheme (OMSS) for surplus rice. Despite efforts, only 0.16 MT of rice has been sold against a 5 MT allocation for the current year, prompting a reevaluation of the strategy.
Inflation and Export Measures:
Rice inflation has persistently been in double digits since October 2022, with a sharp rise to 12.33% in December 2023. The government's ban on white rice exports and a 20% export duty on par-boiled rice reflect efforts to enhance domestic supplies. Additionally, steps like checking hoarding and seeking transparency from stakeholders in the supply chain have been implemented.
Conclusion:
In the face of soaring rice prices, the introduction of subsidised 'Bharat rice' demonstrates the government's commitment to ensuring food affordability for the masses. As Minister Goyal emphasizes the effectiveness of initiatives like Bharat Atta and Bharat Dal, it remains to be seen how these measures will collectively contribute to stabilizing essential commodity prices in the long run.
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