Domestic Prices of Rice Will Remain Under Control, Says Government

According to the government's statement on Friday a ban on the export of broken rice and sufficient supplies in its godowns will help to keep retail rice prices in the local market under control.

The food ministry's statement came a day after its factsheet indicated pricing pressure and increased rice prices in the near term.

The food ministry stated in a statement on Friday that by prohibiting the export of broken rice, the government has successfully ensured domestic food security, and availability of domestic feed for poultry and cattle feed while keeping a watch over inflation as well as domestic rice pricing."

Exports of broken rice are now banned, and all rice other than basmati is subject to a 20% export charge, except parboiled rice.

"The domestic price of rice is stable, and pricing will remain well under control. As compared to the foreign market and neighbouring countries where the price is quite high, the domestic price of rice will be under control due to the excess supply," the ministry said.

Paddy's minimum support price (MSP) has 5.15% increased from Rs 1,940 per quintal in 2021–2022 to Rs 2,040 per quintal in 2022–2023.

The government emphasised that the weekly decreases in the domestic wholesale prices of rice and wheat across all of India were 0.08 percent and 0.43 percent, respectively.

According to data collected by the department of consumer affairs, the average retail price of rice on Friday was Rs 37.65 per kg.

The export ban, according to the ministry, has been imposed in order to produce ethanol for the successful implementation of EBP (Ethanol Blending Programme) and to assure the appropriate supply of broken rice for the domestic poultry industry and other animal feedings. The government has not made any changes in the policy relating to par-boiled rice and basmati rice.

About 55% of India's total rice exports are made up of par-boiled and basmati rice as a result, the ministry said that "farmers would continue to receive fair compensation, and dependent/vulnerable countries will have adequate availability of par-boiled rice as India has a significant share in the global rice export."