India forecasts stable food prices during festive season, calls for a tighter vigil to check export of non-parboiled rice

With 57 lakh tonnes (LT)) of sugar stocks available as of October 1, sufficient for 2.5 months of domestic consumption, more stocks are expected to start arriving from November as the sugarcane harvest and crushing has begun. Stating that exports of sugar will continue to be restricted, the Food Secretary reason that the stress of moisture in the existing sugarcane crop may impact production in the next season, and the government is trying its best to protect consumers from price shocks.

With 3.5% annual inflation observed in wheat, the government said it is prepared to increase the sale under OMSS from the current available stock of 87 LT if the need arises.

While the Food Secretary described wheat prices as "stable" in the wholesale and retail market, he pointed out the inflation in rice has been hovering around 11% over the past few months, and the government expects a sharp drop in prices on the back of the 210 LT rice stock available with the Food Corporation of India (FCI) and the newly harvested Kharif crop for which milling is expected to start soon.

The Union Government is also considering proposals by exporters from Punjab, Haryana and Uttar Pradesh for a reduction in MEP (minimum export price) for basmati rice from the current level of $1,200 per ton.

The industry had urged an interministerial committee to reduce the MEP for basmati rice to boost export competitiveness, with exporters claiming that they couldn't win orders in global food fairs due to a higher MEP of $1,200 per quintal.