The government is said to be considering a number of measures to control rice prices, including stock restrictions and retail sales at discounted prices. The Reserve Bank of India has flagged this issue as a matter of concern. The Center is considering these measures after a poor supply of grains in the weekly auction on Wednesday. While 3.53 lakh tonnes (liters) of wheat were sold out of the 4 liters offered, only 10,000 tonnes of rice were bought out of the 1.93 liters offered by the Food Corporation of India (FCI). “It is unfortunate that traders do not listen to the government and participate in the auction, although they were asked to do so. Although the government has never wanted to take action, it can do so to increase availability”, the source said, without explaining what options the government has. Industry sources said that a stock restriction order is being prepared and there may be discount sales through cooperatives like Bharat Atta which will be sold at ₹ 275/10 kg. Only 1.43 liters of rice have been sold so far, while FCI has sold 55.11 liters of wheat under the open market sale system (OMCC) since June 28 to boost domestic availability and contain price hikes.
Prices up 14% YoY
The average retail price of rice was ₹ 43.33/kg on December 26, up 14 percent from a year ago, while wheat was at ₹ 31.02/kg on Tuesday, up 1 percent. a year ago In the wholesale market, the all-India average for rice is up 15 percent, while wheat is down one percent from a year ago. The Food Corporation of India (FCI), which conducts electronic auctions, has conducted 27 bidding rounds so far. The Center has reserved 101.5 liters of wheat for OMSS till March 2024 and is ready to further increase it by 125 liters if there is demand. The weighted average price of wheat was ₹ 2,181.31 per quintal at the December 27 FCI auction, marginally higher than the previous week’s ₹ 2,178.24 per quintal. The average selling price of rice was ₹ 2,910.86/quintal compared to ₹ 2,905.40/quintal last week. The government expected greater participation from millers and traders if the bidder could offer the minimum amount of rice from 10 tons to 1 ton and the maximum amount was increased from 1000 tons to 2000 tons.
