The government has issued a directive to rice industry associations in India, mandating an immediate reduction in the retail price of rice, as stated in an official notification.
According to the release, recommendations have been made to the associations, urging them to rectify substantial gaps between the Maximum Retail Price (MRP) and the existing retail price. This adjustment aims to safeguard consumer interests and comes in response to reports indicating a notable increase in profit margins claimed by wholesalers and retailers.
To assess the current domestic pricing situation of non-basmati rice, Sanjeev Chopra, the Secretary of the Department of Food and Public Distribution, organized a meeting with prominent representatives from the rice processing industry on Monday.
“During the meeting, it was discussed that the benefit of lower prices has to be passed on expeditiously to the end consumers. The leading Rice Industry Associations were advised to take up the issue with their members and ensure that the retail price of Rice is reduced with immediate effect. There are reports of a sharp increase in the margins being availed by wholesalers and retailers which needs to be tempered. Besides, it was suggested that where there exists a wide gap between the MRP and actual retail Price, the same needs to be brought down to a realistic level in order to safeguard the interest of the consumers,” said the government release.
The rice processing industry was notified by FCI that an ample supply of high-quality rice is accessible, offered through the Open Market Sales Scheme (OMSS) at a reserve price of INR 29/Kg. Additionally, manufacturers and traders were advised to contemplate acquiring FCI rice under OMSS, allowing them to sell to consumers with a reasonable profit margin.