Sources told FE that about 1.5 MT each of rice and wheat have been sold under the Bharat brand.
While the government has revised upward the retail prices of subsidised Bharat rice and wheat and extended sales of grain aimed at curbing rise in prices, it has abolished the practice of cash payments for sale of the commodities by agencies aimed at curbing diversion.
Read More: Gold, Silver Prices Today: Check Latest Bullion Rates In Your City on July 27
Sources told FE that while prices were being revised keeping into consideration the availability and prices of essential commodities, the food ministry has urged agencies such as farmers’ cooperative Nafed, NCCF and Kendriya Bhandars against accepting cash for transactions to track that commodities meant for the consumers is not diverted.
The retail price of ‘Bharat Atta’ has been hiked by 9% to Rs 30/kg from the previous rate of Rs 27.5/kg, while ‘Bharat rice’ would be sold at Rs 34/kg, an increase of more than 17% than the current rate, according to an official communication.
Read More: India’s Digital Payments Record Double-Digit Growth: RBI Data
From the current month onwards, the government will offer a subsidy of Rs 2.35 per kg for ‘Bharat Atta’ which would mean that the effective issue price for such ‘atta’ for Food Corporation of India (FCI) is Rs 20.65/kg.
For ‘Bharat rice’ the government will provide a subsidy of Rs 2/ kg, which would make the effective issue price of around Rs 22/kg to FCI. The subsidy incurred would be financed from the corpus of the Price Stabilisation Fund for which the union budget has made a provision of Rs 10,000 crore for the current fiscal.
Around 3 million tonne (MT) of rice and wheat was alloted from Food Corporation of India stock last year for Bharat rice and atta initiative to agencies such as Nafed, NCCF, Kendriya Bhandars.
Read More: SBI Card Q1 Results: PAT flat YoY at Rs 594 crore, revenue jumps 11%
In February, the government had launched sale of Bharat rice at a subsidised rate of Rs 29/kg in 5 and 10 kg packs which according to the food ministry was aimed at increasing supplies in the market at affordable rates and the step would help in continued moderation of prices.
In November last year, Bharat wheat flour (Atta) sales were launched through retail channels at a rate of Rs 275 per 10 kg bag. Sources told FE that about 1.5 MT each of rice and wheat have been sold under the Bharat brand.
