Shortage in rice production and price increase in the market
The Union Food Ministry has issued a warning about rice in the domestic market. According to the central government, the price of rice in the domestic market will continue to increase in the coming days. The collapse may be due to the possibility of lower production and heavy exports of other non-basmati rice. Rice and flour prices in the domestic market have increased by 9 to 20% compared to last year.
The all-India retail price of rice has increased by 9.03 percent compared to last year, according to data from the Ministry of Consumer Affairs. In the case of flour, the price increase is 14.39 percent, and for flour it is 17.87 percent. At the same time, wholesale prices of rice increased by 10.16 percent, wheat by 15.43 percent and flour by 20.65 percent compared to last year. Last year, rice production in the country was 111.76 million metric tons. That production will decrease to 104.99 million tonnes in 2022–23. That is, compared to the previous season, rice production will be down by 6% this season. Irregular rains are one of the reasons for the shortfall in production, according to the Union Agriculture Ministry. The rice production target for kharif cultivation in the current season was 112 million tonnes. This shortfall in rice production is considered significant at the time of distribution of food grains under the National Food Security Scheme.
A statement issued by the Ministry of Food said, ” The area of rice production may decrease by 6 percent in the Kharif season of 2022. In terms of domestic production, the government fears a shortfall of 60 to 70 lakh metric tonnes. Prices will continue to rise due to a shortfall of 6 million metric tonnes. Along with this, the export of non-basmati rice has increased by 11 percent compared to last year, which is one of the reasons for this price increase. Emphasizing the need to revise the rice export policy, the centre said, ‘In the current international situation, the export of broken rice has increased all over the world. As a result, prices of various commodities, including animal feed, have increased. According to the government, the export of broken rice has increased 43 times in the last four years. In April-August 2019, the export volume of broken rice was 0.51 lakh metric tonnes. In the same period of 2022, exports increased to 21.31 lakh metric tonnes. 15.8 lakh metric tonnes of broken rice were exported during April-August 2021. The price of broken rice has also increased significantly this year. The open market price of broken rice was Rs. 16 per kg, but now the price has increased to Rs. 22 per kg. Animal feed is made from broken rice, due to which the prices of milk, eggs and meat are also increasing.
