The government is in prior discussion with Reliance Retail to sell Bharat brand food items like atta, rice, and pulses at subsidised prices through Mukesh Ambani’s retail chain to control inflation, said a source.
Govt to discuss long-term deal with Reliance Retail, DMart
According to Economic Times, while there have been short-term deals with ecommerce firms like Reliance’s JioMart, Amazon, and BigBasket to stabilise prices, mostly during elections, this is the first time the government is considering a long-term deal with a private retailer to sell food products from its buffer stock at subsidised prices. The government is also planning to talk with DMart and other grocery retailers for similar deals, the source said.
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For now, Reliance didn’t comment anything regarding the matter. The Bharat Brand is a government label providing subsidised food grains and essentials to the middle class, with prices set based on market rates and procurement costs.
Launched in 2023, the government launched Bharat Atta, Bharat Dal, and Bharat Rice for retail sales to help the general public affected by high food inflation, especially those not eligible for free grains under the Pradhan Mantri Garib Kalyan Anna Yojana.
Reliance Retail operates 2700 stores across India
These products are marketed under the auspices of National Cooperative Consumers’ Federation of India and National Agricultural Cooperative Marketing Federation of India (Nafed) through their retail points, Kendriya Bhandar, and even mobile vans.
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“Tying up with a large retailer will increase the reach of the Bharat Brand products, making them available to more people,” explained the source cited earlier.
However, Reliance Industries’ retail subsidiary runs over 2,700 grocery stores, selling everything from fresh fruits and vegetables to dairy, cereals, spices, processed food, beverages, and home & personal care items. As part of the deal, Reliance Retail will assist the government with supply chain, storage, packaging, quality control, and distribution, the source said.
Notably, Bharat brand products are much cheaper than other brands. Bharat Rice was sold at INR 29 per kilogram earlier this year, while other brands were priced between INR 40 and INR 110. Bharat Atta and Bharat Chana Dal were sold at INR 27.50 and INR 60 per kg, respectively, compared to over INR 40 and INR 100 in the open market.
As government-procured wheat and rice are given free to around 807 million low-income people through 538,000 fair price shops. However, many middle-class consumers don’t qualify for free rations. They are the main target for Bharat brand products.
