Now Reading: Govt fixes broken rice reserve price at Rs 2,100 per quintal
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Govt fixes broken rice reserve price at Rs 2,100 per quintal
The Indian government has set a reserve price of Rs 2,100 per quintal for the sale of broken rice under the Open Market Sale Scheme-Domestic (OMSS-D) for the July-September quarter. This is…
The Indian government has set a reserve price of Rs 2,100 per quintal for the sale of broken rice under the Open Market Sale Scheme-Domestic (OMSS-D) for the July-September quarter. This is the first time a price has been fixed for broken rice under the scheme.
The decision follows a meeting of the Dynamic Reserve Price Committee on August 20. The price applies to both raw and parboiled broken rice, and will be valid for auctions conducted until September 30, regardless of when the grain is actually lifted.
Industry sources noted that open market prices could be lower than the OMSS rate due to expectations of higher arrivals. The Ministry of Food and Consumer Affairs announced the move in an official note.
Indian Opinion Analysis
The government typically uses OMSS to offload surplus stocks and moderate open market prices. Fixing a reserve price for broken rice, a category often used for poultry feed and ethanol, suggests either a buildup of stocks or a bid to stabilise prices in downstream sectors. The key signal to watch is whether actual auction prices fall below the reserve, indicating weak demand or oversupply, and whether the government adjusts the price next quarter.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
