The government is planning to launch a new initiative to sell rice at a discounted rate of Rs 25 per kg under the Bharat brand, as part of its efforts to tackle the rising food inflation and provide relief to the consumers ahead of the 2024 Lok Sabha elections.
Why Bharat Rice?
According to the data of the Consumer Ministry, the inflation of rice has increased by 14.1 percent this year compared to last year and its average price has reached Rs 43.3 per kg . This has added to the overall food inflation, which stood at 8.7 percent in November, up from 6.61 percent in October. Cereal prices witnessed a 10.3 percent rise in November, contributing to the high food inflation.
Rice is the most common staple food in many Asian countries including India. Rice is India’s most significant food crop, with over 3,000 varieties grown across the country. India is the second largest producer and consumer of rice in the world after China and accounts for 17.95 percent of the world’s total rice production. In financial year 2023, India’s estimated production volume of rice was over 130 million metric tons.
The government has already taken some measures to stabilise the prices of essential food grains, such as banning the exports of non-basmati rice and imposing an export floor price for basmati rice. The Food Corporation of India (FCI) has also offered rice under the Open Market Sales Scheme (OMSS) to increase its availability in the domestic market.
However, these steps have not been enough to cool down the retail prices of mass consumption rice varieties, which have remained stubbornly high despite the curbs on certain exports and open market sales by the FCI.
Hence, the government is considering the introduction of Bharat rice, which will be offered at a concessional rate and may be made available through government agencies such as Nafed, NCCF, Kendriya Bhandar outlets, and mobile vans.
How Bharat Rice will work?
The government is likely to start sale of subsidised grain through retail outlets under the Bharat rice initiative soon. The proposed Bharat rice will be sold at a discounted rate of Rs 25 per kg, which is almost half of the current average retail price of rice. The government will bear the subsidy cost for this scheme, which is expected to benefit millions of consumers, especially those belonging to the lower income groups.
The process of selling Bharat rice is expected to follow the same model as that of Bharat dal and atta, which are already being distributed at over 2,000 retail points at concessional rates of Rs 27.50 per kg and Rs 60 per kg, respectively.
The government hopes that by introducing Bharat rice, it will be able to curb the cereal inflation and ease the pressure on the consumers’ budget. It also aims to create a positive sentiment among the voters ahead of the general elections next year.