Government says domestic rice prices may continue to rise

NEW DELHI: Domestic rice price is trending up and it “could continue to rise” due to low kharif production forecasts and an 11% increase in non-basmati rice exports, the Food Ministry said on Thursday.
The statement made in the fact sheet the ministry has issued details the reasoning behind the recent amendments to India’s rice export policy.
The ministry also said recent changes in India’s rice export rules “have helped keep domestic prices in check” without reducing the possibility of exports.
Earlier this month, the government banned the export of broken rice and imposed a 20% export tax on non-basmati rice to increase the domestic supply of rice-growing acreage in this kharif crop.
In its fact sheet, the Food Ministry said: “Domestic rice prices are on an upward trend and may continue to rise due to low production forecasts of around 6 million tons and an 11% increase in non-basmati rice exports. compared with the same period last year. ”
Retail price of rice increased 0.24% m-o-m, 2.46% m-o-m and 8.67% y-o-y on September 19. The 5-year average increased 15.14%. speak.
The domestic price of broken rice, which was Rs 16/kg on the open market, has risen to around Rs 22/kg in the states, it added.
Poultry and livestock farmers are most affected by the high prices of feed ingredients, the ministry said, adding that about 60-65% of input costs for poultry feed are from rice. plate.
“Any increase in raw material prices is reflected in the prices of poultry products such as milk, eggs, meat, etc., which increases food inflation,” the report notes.
According to the ministry, the international price of Indian non-basmati rice is selling around Rs 28-29/kg, which is higher than the domestic price. Imposing a 20% export tax on non-basmati rice will lead to a drop in rice prices.
The ministry said domestic rice production is estimated to fall 6% to 104.99 million tonnes during the 2002-23 kharif crop.
The ban on exports of broken rice, used as poultry feed, was imposed after an increase in grain exports in recent months, putting pressure on the domestic market, the ministry added.
“This is an interim measure that has been taken because of concerns about the country’s food security in line with the achievement of the Sustainable Development Goals (SDGs).”
The changes were made under the pretext of the need to support the ethanol blending program to save oil import costs and help the livestock and poultry industry by reducing feed costs that affect prices. milk, meat. and eggs, it said.
The global demand for broken rice has increased as the geopolitical scenario has impacted the price movements of commodities, including those related to animal feed.
Broken rice exports have increased in the past four years to 21.31 thousand tons in April-August this year from 0.51 thousand tons in the same period last year, the ministry added.
The government has not made any changes in the policy regarding boiled rice so that farmers continue to get good remuneration. Similarly, there are no policy changes for basmati rice.

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