ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Politics-Dialogue on a Dialogue

IN most parts of the country, the price of rice is currently ruling between 50 paise and Re 1,00 per kilogramme above what it was a year ago. This in part reflects the fact that rain was scanty in parts of the kharif belt during September- October, which has led to a shorter rice crop compared to the re- cord 49 millions tonnes in the previ- ous season. But other, perhaps equally substantial, factors too are at work. There is an excess liquidity in the agricultural and trading sectors, for which the public procurement operations themselves have been responsible. Commercial bank credit, it is well known, has been utilised to the hilt to purchase both rice and wheat over the past 16 months, while the thinning out of the public distribution system confirms the other fact that only a minor part of the food- grains procured during this period have been distributed. The additional liquidity is therefore very much there in the system.

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