Centre mandates rice, paddy stock declaration to check price surge

In a move aimed at addressing inflationary pressures in the rice market, the central government has issued directives requiring mandatory declaration of rice and paddy stocks across southern India. The directive applies to five states in the region and is designed to enhance transparency in the supply chain and prevent stockpiling by traders and rice millers.

The measure grants states the authority to impose upper limits on the quantity of rice and paddy that can be held by commercial entities, effectively controlling the volume of grain available in warehouses. By restricting inventory levels, authorities hope to release stocks into the market and alleviate price pressures that have mounted in recent months.

Hoarding has emerged as a significant concern for policymakers, with intermediaries sometimes withholding supplies from markets in anticipation of higher prices. The stock declaration mandate aims to create a comprehensive database of available supplies, allowing the government to monitor market conditions and intervene when necessary.

The directive reflects broader efforts by the Centre to manage food inflation, which has become a policy priority. By enforcing stock limits and requiring regular declarations, authorities believe they can improve market efficiency and ensure better availability of essential food grains for consumers across the region.