Govt Directs Traders To Ensure Reduced Retail Prices Of Rice With Immediate Effect

New Delhi, Dec 19 (KNN) The Department of Food and Public Distribution in a meeting with leading rice processing industry representatives directed them to ensure that the retail price of rice is reduced with immediate effect.

Department of Food and Public Distribution Secretary Sanjeev Chopra warned the association that undue means of profiteering would soon be dealt with strictly.

"It was discussed in the meeting that the domestic prices of rice are increasing despite a good crop this Kharif, ample stocks with FCI and in the pipeline, and various regulations in place on rice exports," he said, during a meeting with the leading rice processing industry representatives in New Delhi.

During the meeting, Chopra, said, "The annual inflation rate of rice has been hovering around 12 per cent for the past two years and is cumulating over the years, which is a cause for concern. The rice industry should ensure that the prices in the domestic market need to be brought down to optimal levels and efforts at profiteering are dealt with strictly.”

The government said a few reports show that there is a sharp increase in the profit margins being availed by wholesalers and retailers. It led to a gap between the maximum retail price (MRP) and the actual price. The government directed traders to bring down the price-profiteering gap to realistic levels to serve the interests of consumers.

The government has already taken measures to ensure the flow of rice into the domestic market.

It had placed a curb on the export of basmati rice and banned the export of two sub-categories of broken rice and non-basmati white rice in July this year. Besides, it has started selling rice in the market through OMSS-D to offset the rising price. The government has been able to sell off only less than 5 per cent of the allocated rice in the past six months.

The government of India had allocated 25 lakh metric tonnes (LMT) under open market sale schemes in the domestic market (OMSS-D), but only 1.19 LMT of rice has been sold in the open market to private traders, despite FCI Regional Offices actively promoting this initiative through extensive advertising.

(KNN Bureau)