While the government has revised upward the retail prices of subsidised Bharat rice and wheat and extended sales of grain aimed at curbing rise in prices, it has abolished the practice of cash payments for sale of the commodities by agencies aimed at curbing diversion.
Sources told FE that while prices were being revised keeping into consideration the availability and prices of essential commodities, the food ministry has urged agencies such as farmers’ cooperative Nafed, NCCF and Kendriya Bhandars against accepting cash for transactions to track that commodities meant for the consumers is not diverted.
Revised Retail Prices of Subsidized Bharat Rice and Wheat:
- The retail price of ‘Bharat Atta’ has been increased by 9% to Rs 30/kg from the previous rate of Rs 27.5/kg, while ‘Bharat rice’ would be sold at Rs 34/kg, an increase of more than 17% than the current rate.
- The government will offer a subsidy of Rs 2.35 per kg for ‘Bharat Atta’, making the effective issue price for such ‘atta’ for Food Corporation of India (FCI) Rs 20.65/kg. For ‘Bharat rice’, the government will provide a subsidy of Rs 2/kg, resulting in an effective issue price of around Rs 22/kg to FCI. The subsidy incurred will be financed from the corpus of the Price Stabilization Fund, for which the union budget has made a provision of Rs 10,000 crore for the current fiscal.
Extension of Sales and Subsidized Grain Allotment:
- Around 3 million tonnes (MT) of rice and wheat were allotted from Food Corporation of India stock last year for the Bharat rice and atta initiative to agencies such as Nafed, NCCF, and Kendriya Bhandars.
- The government aims to sell 15 lakh tonnes each of FCI rice and wheat flour under the ‘Bharat’ brand in the next 4-5 months, indicating a significant scale of intervention.
- The government has launched the sale of subsidised Bharat rice at Rs 29/kg in 5 and 10 kg packs to increase supplies in the market at affordable rates and continue moderating prices.
- In November last year, Bharat wheat flour (Atta) sales were launched through retail channels at a rate of Rs 275 per 10 kg bag. About 1.5 MT each of rice and wheat have been sold under the Bharat brand.
Abolition of Cash Payments and Diversion Control:
- The government has abolished the practice of cash payments for the sale of commodities by agencies to curb diversion. The food ministry has urged agencies such as farmers’ cooperative Nafed, NCCF, and Kendriya Bhandars against accepting cash for transactions to track that commodities meant for the consumers are not diverted.
In summary, the government’s measures, including the revision of retail prices, extension of sales, and the abolition of cash payments, reflect its efforts to manage food prices and ensure the availability of essential commodities at affordable rates.
