The Government on Monday directed leading Rice Industry Associations to reduce the price of rice in the country with immediate effect citing that there is ample stock of rice with Food Corporation of India. This advisory was given by Secretary of Department of Food and Public Distribution, Sanjeev Chopra, during a meeting with leading Rice processing industry representatives to review the domestic price scenario of non-basmati rice.

According to the Ministry, the department stressed in the meeting that the rice industry needs to ensure that the prices in the domestic market need to be brought down to optimal levels and efforts at profiteering dealt with strictly. The meeting also acknowledged that the Annual Inflation Rate of Rice is hovering around 12% for past two years and is cumulating over the years which is a cause of concern.

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, the Ministry stated.

During the meeting, FCI informed the rice processing industry that sufficient stock of good quality rice is available which is being offered under Open Market Sale Scheme (OMSS) at a reserve price of Rs. 29/Kg. It was also suggested that manufacturers/traders may consider lifting FCI rice under OMSS which may be sold to the consumers with a reasonable margin.