Syllabus: GS-III
Subject: Economy
Topic: Agriculture and allied
Issue: Rice Production
Context: The Indian government made it mandatory for all traders, wholesalers, retailers, and millers to declare their respective rice stocks.
Paddy production in India:
- The southern States have suffered a drop in paddy production because of inadequate rainfall.
- However, in the north rice production (basmati and non-basmati) is up 15%.
Rice prices:
- The retail price of rice has increased by 14.51% in the last one year.
- Among the 430 varieties of rice produced in the country, the rice inflation is high in the varieties that is largely preferred by consumers.
Why are prices increasing?
- The increase in Minimum Support Price for rice in the last five years.
- Increase in the cost of transport, storage, etc.
- Drop in production
- The export duty levied by the government is neutralized by the high international prices.
What are the measures taken so far?
- The government has asked traders, wholesalers, retailers, chain retailers and millers to report the stocks online.
- It launched the retail sale of ‘Bharat Rice’ to general consumers at ₹29 per kg.
- The export of broken rice was banned and specific export duties were imposed.
Way forward:
- The government should prioritize sale for consumption since there is a demand for rice for consumption, ethanol production, and cattle feed.
| Prelims Connect:
1. Bharat Rice: To check inflationary trends in the food economy, the Ministry of Consumer Affairs, Food & Public Distribution started retail sale of ‘Bharat Rice’ to general consumers. Ø The 3 agencies viz NAFED, NCCF and Kendriya Bhandar areselling Bharat Rice. 2. Minimum Support Price (MSP): it is a form of market intervention by the Government of India where a minimum amount of price is fixed for certain crops. It aims to insure agricultural producers against any sharp fall in farm prices. |
