India Allocates 5 Lakh Tonnes Each of Rice and Wheat for ‘Bharat’ Brand Sale

The Centre has earmarked 10 lakh tonnes, 5 lakh tonnes each of wheat and rice, for cooperative organisations like the National Agricultural Cooperative Federation of India (Nafed) and the National Cooperative Consumers Federation of India (NCCF). These will be sold directly to consumers under the “Bharat” brand, potentially allowing essential commodities to be offered at prices lower than the market rate.

The government has mandated that these cooperatives must submit an undertaking confirming that they have sold their previously allocated stocks before receiving fresh supplies.

According to sources, the sale of rice to Nafed and NCCF for retail distribution through their stores, mobile vans, e-commerce platforms, and large retail chains is expected to resume in November after a gap of around three months. The maximum retail price has been set at ₹340 for a 10 kg bag of rice and ₹300 for a 10 kg bag of wheat flour (atta).

Subsidy Removed

The issue price for rice from the Central Pool stock managed by the Food Corporation of India (FCI) was set in July. As per the notification, cooperatives can purchase rice at ₹2,400 per quintal until October 31, and at ₹2,480 per quintal from November 1 until June 30, 2026. The issue price for wheat from FCI stock has been fixed at ₹2,550 per quintal, excluding transport costs.

However, the government has withdrawn the ₹200 per quintal subsidy from the Price Stabilization Fund (PSF) for ‘Bharat’ brand rice sold by these cooperatives, effective July 1. Sale of ‘Bharat’ brand rice through private millers has also been disallowed this year.

Sources stated that of the 10 lakh tonnes quota for the year, only Nafed and NCCF have been allocated stocks, as Kendriya Bhandar did not participate after discontinuing purchases in the second phase of allocation in the current fiscal.

Skipping the Festival Season

Although the government has sufficient stock to re-launch the “Bharat” brand rice and atta, delays in notification may prevent these cooperatives from selling during the festive season of Dussehra and Diwali, sources said. Once the order is received, both Nafed and NCCF must float tenders with millers for processing wheat into atta, packaging, and supply—a process that could take around six weeks.

Data from the Consumer Affairs Ministry shows that the all-India average retail price of atta was ₹36.81/kg on August 25. While slightly lower than a week ago, it is 0.4 per cent higher than a month earlier, 3.2 per cent higher than a year ago, and 4.5 per cent up from two years ago. The rise in retail prices is modest compared to the increase in the government-set minimum support price (MSP), which was ₹2,425 per quintal in 2024-25, up 14 per cent from ₹2,125 per quintal in 2022-23.

The all-India average retail price of rice was ₹43/kg on August 25, marginally higher than both a week and a month ago. Compared to a year earlier, rice is 0.3 per cent lower, and 3.3 per cent higher than two years ago. The MSP for paddy for the upcoming season starting October 1 is ₹2,389 per quintal, up 9 per cent from two years ago.

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