Essential prices to remain stable this festive season, assures Food Secy

A ban on the export of broken rice was put in place in September last year. Subsequently, India levied a 20 percent export duty on all rice types, barring basmati and parboiled

Essential prices will remain stable this festive season, and the Centre does not anticipate any sharp hikes on commodity costs, assured Food Secretary Sanjeev Chopra on October 19, further reflecting the government's organic cost-containment efforts amid the skyrocketing inflation.

"The government has been using all tools at its command- be it open market sale of rice & wheat, stock limits, and export curbs to keep prices stable. We do not anticipate any rise during the coming festivities," he noted in an interaction with the media.

Over the past year amid persistently high inflation, India has taken several steps to keep retail prices of rice in check.

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A ban on the export of broken rice was put in place in September last year. Wheat exports were banned in May last year. Subsequently, India levied a 20 percent export duty on all rice types, barring basmati and parboiled. By July this year, the country had halted non-basmati white rice exports, and the following month saw a 20 percent duty on parboiled rice alongside a minimum export price (MEP) of $1,200 per tonne for basmati varieties.

While the government had put sugar in a restricted category last sugar season (October 1- September 31), allowing exports of only 6 million metric tonnes of the commodity, the government on October 18 decided to extend the same notification "till further notice."

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Other than this, the government has also imposed stock limits on rice, wheat and pulses, and has been offloading rice and wheat in open market sales to bring down prices.

While the curbs have been criticised by the industry, the food secretary defended the move and said, "While the bans may have impacted certain sections adversely, but are necessary for the welfare of 140 crore consumers of the country. We have seen good results, they have been very effective in ensuring prices remain stable."

As per government figures, shared during the press conference, a 20 percent export duty on parboiled rice has led to exports falling by 65 percent in quantity. "We have even allowed exports of close to 12 lakh tonnes of rice to friendly countries," Chopra added.

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On sugar prices, Chopra said that it has been a decade of stable retail prices of sugar with 2 percent retail inflation. "Despite international sugar prices being at 12 years high, sugar in India is among the cheapest in the world," he said.

"To ensure sufficient availability of sugar for domestic consumers at reasonable price throughout the year, the Government of India has continued ‘restriction’ of sugar exports till further orders. This would also ensure healthy stocks of sugar in the country and maintenance of consistency in India’s efforts towards greener fuel under the Ethanol Blended with Petrol (EBP) Programme," a statement by the ministry added.

"All edible oils have reduced in prices by more than 15 percent other than groundnut oil. This is the outcome of timely measures by the govt," Chopra further added.

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