Govt planning to Sell FCI Rice under Bharat brand

In a bid which is to tackle the surging prices of rice, the Indian government is seen to be devising a plan that would bring FCI rice under the orb of the brand; Bharat. The aim is to counter the current price inflation rate of 13% Year on Year, especially with an eye on the crucial 2024 general elections. A minister from the official food sector currently revealed that the definite which is proposed discounted rate for this rice is still up and around in the air.

The government is further attempting the rein in retail rice prices by boosting domestic availability through the Open Market Sale Scheme which has not seen the expected success. Under the OMSS the Food Corporation of India (FCI) has established a reserve price of Rs 29 per kg for quality rice. The decision regarding whether it will be sold at this rate or a further lower rate is also pending and is awaiting the Group of Ministers’ decision.

Interestingly, the government has already been selling the atta and lentils under the brand through cooperative outlets managed by them. However, the FCI’s sales figures reveal a stark contrast i.e. only 3.04 lakh tonnes of rice have been sold under OMSS this year, also while wheat sales have reached a substantial 82.89 lakh tonnes.

This move to introduce Bharat branded rice aligns with the broader governmental strategy to navigate food prices and ensure food security. Given that rice holds a staple status in Indian households, the government is taking proactive steps to alleviate inflationary pressures in this vital sector.

As the government grapples with economic intricacies, the decision on pricing for Bharat rice is pending approval from the Group of Ministers. This initiative underscores a holistic approach to stabilize essential food prices and enhance domestic food availability i.e. crucial factors in the political landscape leading up to the imminent 2024 general elections. The success of this endeavor hinges on the government’s ability to find a delicate balance between making rice affordable for consumers and ensuring fair returns for producers.