Indian Government Directs Rice Traders to Disclose Stock Holdings to Curb Price Rise

Indian Government Directs Rice Traders

VoM News Desk | February 2, 2024 | 05:17 PM IST | Breaking News, India | Tags: Indian Stock Market | Follow on Google News

Indian Government Directs Rice Traders to Disclose Stock Holdings to Curb Price Rise

Indian Government Directs Rice Traders to Disclose Stock Holdings to Curb Price Rise

Rice retailers, wholesalers, and processors in India are mandated to disclose their stock holdings on a government portal starting next Friday, according to Sanjeev Chopra, Secretary of the Department of Food and Public Distribution. The directive aims to curb rising rice prices and ensure transparency in stockholding. The reporting obligation applies to all categories of rice, including basmati or non-basmati, parboiled, or broken. The move is part of efforts to address concerns of hoarding and stabilize food grain prices.

Efforts to Stabilize Rice Prices

To tackle increasing rice prices, the government has implemented various measures. Subsidized Bharat Rice has been supplied by the Food Corporation of India to entities like NAFED, NCCF, and Kendriya Bhandar, with a maximum retail price set at 29 rupees per kg. The targeted intervention is focused on areas where rice prices are higher than the national average. The government is considering the imposition of stock limits if necessary to prevent hoarding.

Background on Rice Export Policies

India had prohibited the export of non-basmati white rice on July 20 to safeguard domestic prices and ensure food security. However, exports to specific countries are allowed through National Cooperative Exports Limited. In late August, the country introduced safeguards by imposing a minimum floor price on basmati rice exports. Additionally, a 20% export duty on parboiled rice was extended until March 31, 2024, to maintain domestic availability and control prices.

Call for Transparency and Market Discipline

The government’s move to mandate stock disclosure reflects a commitment to transparency in the food grain market and aims to discourage hoarding practices. By encouraging market participants to disclose their stock holdings, the authorities seek to ensure a fair and disciplined marketplace, addressing concerns about speculative activities contributing to price volatility.

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