Rice prices may shoot up warns ASSOCHAM

The Associated Chamber of Commerce and Industry (ASSOCHAM) study called for close monitoring of food prices following the spurt in pulses, onion and some edible oils. The study cautions that the price of rice is a serious cause of concern.

ASSOCHAM said timely safeguards need to be taken. Although the government estimates Kharif production at 90.61 Million Metric Tonnes (MMT), the target was unlikely to be achieved due to severe deficit rains in Punjab, Haryana, Uttar Pradesh, Bihar, Maharashtra and Karnataka. At best, the stock that could be achieved is 89 MMT. According to the study, rice stocks have been steadily depleting for the past three years.

It said as against in 24.59 MMT in 2012, only 13.89 MMT reserves surplus (plus surplus reserve of paddy 3.61 MMT) are in stock as at present. Releasing a paper entitled ‘Impact of weak and deficient monsoon on agricultural production and prices,’ ASSOCHAM Secretary General D S Rawat said, the monthly rice requirement is estimated between 8.5 to 9 MMT.

Unless the government is able to handle the situation prudently, depleting stocks will soon reflect on the open market prices,” the study said. It said the actual production may be around 103 MMT during 2015-16.

“Given the huge domestic demand for rice, government needs to closely monitor both prices and stock situation. Already a section of global exporting community is evaluating possibility of India entering international market for import of these commodities from 2017, “ the study said.