Centre revives Bharat Atta, Rice to temper price rise

The Centre has approved fresh allocations of subsidised Bharat Atta and Bharat Rice as it seeks to temper a gradual rise in the prices of key household staples, according to an official order seen by HT

The Centre has approved fresh allocations of subsidised Bharat Atta and Bharat Rice as it seeks to temper a gradual rise in the prices of key household staples, according to an official order seen by HT. While the initial allocation is modest, traders and analysts said the move signals that the government has ample stocks and can step up market intervention if prices continue to firm.

Although no date has been fixed for the retail launch, the government has already allocated wheat and rice to central cooperative agencies for processing into Bharat-branded products, indicating that preparations for the rollout are underway.

The order, issued on July 28, allocates 50,000 tonnes of wheat and 300,000 tonnes of rice for retail sale through government cooperatives NAFED and NCCF as well as Kendriya Bhandar under the Open Market Sale Scheme (Domestic).

As per the order, Bharat Atta will be sold at ₹35 per kg in 5-kg and 10-kg packs. Bharat Rice will be priced at ₹33 per kg in 30-kg packs and ₹35 per kg in 5-kg and 10-kg packs until October 31, after which the price for the smaller packs will be revised to ₹36 per kg. The government will continue to provide a ₹2.35-per-kg subsidy from the Price Stabilisation Fund on wheat supplied for Bharat Atta.

The fresh allocation is significantly smaller than those made during the earlier phases of the Bharat brand programme. Since its launch in 2023, the Centre has allocated more than 2.01 million tonnes of wheat and 1.87 million tonnes of rice for Bharat Atta and Bharat Rice, of which nearly 1.89 million tonnes of wheat and 1.73 million tonnes of rice had been sold by March this year, according to a Lok Sabha reply. The latest allocation is only a fraction of those volumes, suggesting the government is adopting a calibrated approach.

“The government appears to be starting cautiously. Prices have firmed but are still within its comfort zone, so the initial allocation is more a signal to the market than a large supply intervention. If needed, allocations can be scaled up quickly,” a former government secretary said, requesting anonymity.

People in the trade industry said the small quantity is unlikely to have a significant impact on supplies by itself but serves as a signal that the government is prepared to intervene quickly if prices move beyond its comfort zone.

As of July 31, retail rice prices have risen more than 5% over the past year and about 2% in the past month to around ₹45 per kg. Wheat flour prices have also edged up, increasing about 1% both year-on-year and month-on-month to ₹37 per kg, according to data from the consumer affairs daily price monitoring portal.

The decision comes even though government granaries are significantly better stocked than a year ago. The Food Corporation of India held 52.2 million tonnes of wheat on July 1, up nearly 46% from 35.9 million tonnes a year earlier and well above the prescribed buffer norm of 27.58 million tonnes for the July-October quarter. Rice stocks stood at 40.3 million tonnes, the highest level recorded since 1998.

The comfortable stock position gives the government sufficient room to intervene through retail sales or larger open market auctions if wheat prices rise sharply in the coming months, said Sandeep bansal, Director at Shree goverdhan roller flour mills in Mathura. Multiple traders and market experts told HT that the Centre may eventually have to sell at least 8 million tonnes of wheat through the open market during 2026-27, although they expect the government to proceed in phases rather than announce a large release upfront.

The Bharat brand programme also covered pulses. Bharat Chana Dal, followed by Bharat Moong Dal and Bharat Masur Dal, was introduced between 2023 and 2025 to moderate retail pulse prices. More than 1.4 million tonnes of Bharat Chana Dal were sold across two phases before subsidised Bharat Dal sales were discontinued in April 2025 after pulse prices stabilised.