Domestic rice price continues to show upward trend

Domestic rice prices are showing an upward trend and it “may continue to increase” due to low kharif production forecast and 11 per cent jump in export of non-basmati rice, the food ministry said today.

The statement was made in the fact sheet that the ministry issued detailing reasoning behind recent amendments to the India’s rice export policy.

The ministry also said that the recent changes in India’s rice export rules “have helped keep a check on domestic prices” without reducing the availability for exports.

Early this month, the government had banned export of broken rice and imposed a 20 per cent export duty on non-basmati rice to boost domestic supplies paddy crop acreage in this kharif season.

In its fact sheet, the food ministry said: “The domestic prices of rice are showing increasing trend and it may continue to increase due to low production forecast by about 6 million tonnes of paddy and 11 per cent increase in export of non-basmati rice compared to corresponding period of last year.” The retail price of rice showed an increase of 0.24 per cent over the week, 2.46 per cent over the month and 8.67 per cent over the year as on September 19. There is an increase of 15.14 per cent on an average of five years, it said.