In a significant move to combat the rising inflation rate of rice, the government has unveiled its strategy to offer rice under the Bharat brand at an economical price of Rs 25 per kilogram. This announcement was confirmed by a senior government official. The distribution of this affordable rice will be facilitated through the National Agricultural Cooperative Marketing Federation of India (Nafed), National Cooperative Consumers’ Federation (NCCF), and Kendriya Bhandar outlets.
To address the double-digit inflation in rice, the government has taken the initiative to make Bharat brand rice available at Rs 25 per kilo, as stated by a senior government official. The distribution channels for this affordable rice include the National Agricultural Cooperative Marketing Federation of India (Nafed), National Cooperative Consumers’ Federation (NCCF), and Kendriya Bhandar outlets.
This move follows the government’s existing practice of selling atta and pulses under the Bharat brand. With cereal prices witnessing a notable increase of 10.27% in November, contributing to a food inflation rate of 8.70% for the same month (up from 6.61% the previous month), the government aims to alleviate the burden on consumers.
While the government has successfully managed the inflation in wheat prices by increasing the quantity available in the open market through e-auctions conducted by the Food Corporation of India (FCI), the off-take of rice has remained minimal. The high inflation in a staple cereal like rice poses a concern for the government, particularly as it prepares for the general elections in 2024.
In response to the current scenario, the FCI has recently made adjustments to its Open Market Sale Scheme (OMSS) rules for rice, providing some relaxation. The bidding range for the quantity of rice has been set at a minimum of 1 MT and a maximum of 2000 MT, aiming to boost the sale of rice under OMSS and enhance the grain’s supply in the market.
This strategic step is anticipated to provide relief to consumers and contribute to stabilizing the inflationary pressures on essential food items. Stay tuned for further updates on the implementation and impact of this initiative in the market.