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Domestic costs of rice could proceed to extend: Food Ministry

A DAY after the Agriculture Ministry pegged kharif rice output at 104.99 million tonnes – decrease than 111.76 mt within the final kharif season – the Food Ministry on Thursday mentioned the home costs of rice are exhibiting “increasing trend” and it might “continue to increase” as a result of decrease manufacturing forecast and the upper non-basmati export.

The Food Ministry’s assertion got here on a day when the all-India day by day common retail and wholesale costs of rice, wheat, wheat flour recorded 9-20 per cent rise than the costs a yr in the past.

According to information accessible on the Department of Consumer Affairs portal, the all-India day by day common retail costs of rice had been greater by 9.03 per cent, wheat by 14.39 per cent and wheat flour by 17.87 per cent as in comparison with their costs a yr in the past. The all-India day by day common wholesale costs of rice had been greater by 10.16 per cent, wheat by 15.43 per cent and wheat flour by 20.65 per cent as in comparison with their costs a yr in the past (see chart).

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The Agriculture Ministry on Wednesday had launched the First Advance Estimates of manufacturing of main kharif crops for 2022-23 that pegged kharif rice manufacturing at 104.99 million tonnes throughout the present season in wake of uneven monsoon, which is 6.77 mt – or 6 per cent – decrease than the 111.76 mt manufacturing within the final season. The kharif rice manufacturing estimates are decrease than the goal of 112 mt set for the present season and manufacturing of 105.21 mt for 2020-21. The dip in kharif rice manufacturing is critical in view of the requirement of rice for distribution below the National Food Security Act 2013.

On Thursday, discussing the home rice manufacturing state of affairs, the Food Ministry in an announcement mentioned, “The likely shortfall in area and production of paddy for the kharif season 2022 is 6%.”

“In domestic production, 60-70 LMT estimated production loss was earlier anticipated. Now, production loss of 40-50 LMT is expected and production output is not expected to be higher this year but only on par with previous year,” the assertion mentioned.

“The domestic prices of rice are showing increasing trend and it may continue to increase due to low production forecast by about 6 MMT [million metric tonnes] of paddy and 11% increase in export of non-basmati compared to corresponding period of last year,” the ministry mentioned.

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The assertion mentioned the current modifications in India’s rice-export rules have helped preserve a verify on home costs with out lowering the supply for exports.

“The changes have been done keeping in mind the need to support the ethanol-blending programme that saves costly oil imports and to help the animal husbandry and poultry sectors by reducing the cost of animal feed that has a bearing on the price of milk, meat and eggs,” the assertion mentioned.

Explaining the necessity for modification in rice export rules, the assertion mentioned, “There has been a rise in global demand for broken rice due to geo-political scenario which has impacted price movement of commodities including those related to animal feed.”

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“Export of broken rice has increased by more than 43 times in past 4 years (21.31 LMT exported from April-August, 2022compared to 0.51 LMT in the same period in 2019) with significant jump in 2021-22 over last year. In the year 2021, the quantity exported was 15.8 LMT (April-August, 2021). Prices of broken rice rose significantly in the current year,” it mentioned.

Highlighting the impression of rising export of damaged rice, the assertion mentioned, “Domestic price of broken rice, which was Rs 16/kg in the open market, has increased to about Rs 22/kg in states. Poultry sector and animal husbandry farmers were impacted the most due to price hike of feed ingredients as about 60-65%inputs cost for poultry feed comes from broken rice. Any increase in prices of feedstock are reflected in price of poultry products like milk, egg, meat etc. adding to food inflation.”

“As per the notification of DGFT, the transitional relaxation for export of raw broken rice (HS Code 1006-4000) was up to 15th September, 2022 but now has been extended up to 30th September, 2022 and shall be further extended up to 15th October, 2022,” the assertion mentioned.

The authorities had banned the export of damaged rice on September 9.

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