Government can take this big step before Dussehra, know how much it will affect the prices of rice

India is the world's largest rice exporter. Despite this, the stock of rice in India reached its lowest level in three years in the month of September. At present the stock of rice is 232 lakh metric tonnes, whereas last year this figure was 244 lakh metric tonnes. At the same time, the stock of rice in 2021 was 268 lakh metric tons in the month of September.

The central government has geared up to control rising inflation before the festive season. It is being said that the Central Government can extend the period of 20 percent export duty imposed on boiled rice in the month of August. The central government hopes that this decision will reduce the export of boiled rice, which will increase the stock of rice in the country. In such a situation, due to increase in storage of rice, prices will fall.

According to Moneycontrol report, the central government can extend the timing of 20 percent duty imposed on the export of boiled rice till the end of the financial year 2023-2024. In fact, on August 25, the Center had imposed 20 percent duty on the export of boiled rice. Then he had said that 20 percent duty on export of boiled rice will continue till October 15. But, today is 6th August. In such a situation, the export duty imposed on export of boiled rice will expire after 10 days.

Annual consumption only 2 million tons

But the festive season is starting from 16th October. Festivals like Dussehra and Diwali will be celebrated only after October 16. In such a situation, the demand for rice will increase in the country. This is the reason why the Central Government is considering extending the period of 20 percent export duty imposed on the export of boiled rice, so that the prices of rice do not increase. Thus, the annual consumption of boiled rice in India is only 2 million tonnes and it is not a part of the Public Distribution System (PDS).

Rice can be used in PDS

At the same time, Anand Chandra, co-founder of Arya.Ag, says that they operate more than 3,000 warehouses for wheat and rice across the country. According to him, the demand for boiled rice in the country is very limited. Despite this, export duty has been imposed on boiled rice. Anand Chandra says that the government is imposing duty on the export of boiled rice, so that if there is a shortage of other grains, then in such a situation, boiled rice can be used in PDS as an alternative.

20 percent export duty imposed

Retail inflation has increased with the arrival of monsoon. Inflation had increased to 7.8 percent in July. However, the government has taken several steps to control rice prices. In September, it had banned the export of broken rice through 2022. After this, the export of non-Basmati white rice was banned in July 2023. Then, the central government imposed 20 percent export duty on boiled rice on August 25, effective till October 15.

Despite government restrictions, inflation still persists

However, due to this decision of the Central Government, the prices of rice have remained stable. Despite this, the stock of rice with the Food Corporation of India has reached its lowest level in three years. Consumer Affairs Ministry data shows that as of October 5, the average retail price of rice in India was 11 percent higher than last year. Despite government restrictions, inflation still persists.