Now the price of rice may increase, the budget of housewives may deteriorate in the festive season
Due to less sowing of paddy in Kharif season The shortfall in rice cultivation is estimated to be around 60-70 lakh tonnes. Rice prices amidst this big drop in production may accelerate. That is, the rice served on your plate can be expensive. In such a situation, the pressure of inflation on the already sluggish economy will increase further. Retail inflation has reached just 7 per cent. If food items like rice and wheat become expensive then the situation can get worse.
If we look at the data of recent months, the prices of all food items, including food grains, have increased, due to which the retail inflation, which has been falling for three consecutive months, rose again in August and reached 7 per cent. Along with this, there was pressure on the prices of other food items including food grains on wholesale inflation. Experts and analysts expect inflation to remain high in the near future. Meanwhile, erratic rains in June-September and the absence of southwest monsoon have raised concerns about the paddy crop.
What are the opinions of experts?
India’s rice production stood at 13.229 million tonnes in the 2021-22 crop year, up from 1243.7 million tonnes a year ago. The Food Ministry has estimated that the production of rice in this year’s Kharif season will be less by 60-7 million tonnes. Kharif season accounts for about 85 per cent of the country’s total rice production.
However, according to some experts, the decline in rice production is not a cause for concern as the already existing stock in India is sufficient to meet the demand of the Public Distribution System (PDS). Apart from this, the government’s decision to ban the export of broken rice and impose 20 per cent duty on non-basmati exports will help tide over the situation.
Inflation became a matter of concern
An article published in the latest Reserve Bank of India bulletin said that despite relief in oil and gas and basic ingredients prices, rising prices have put pressure on food prices. A Finance Ministry report on Saturday stressed the need for proper management of agricultural commodities stocks in view of the low cropping area in Kharif season. However, it has been said that complacency should be avoided on the inflation front.
NITI Aayog member Ramesh Chand told PTI that there is no immediate threat to domestic inflation due to rice. The increase in prices was due to increase in MSP and price of other commodities like fertilizers and fuel. Which will certainly increase with the increase in prices. Only time will tell how much this increase will be and how much effect it will have on the common people. But the price of rice in the open market has started increasing for several days. The price of rice has increased by more than Rs 10 per kg as compared to earlier.