Archive · 2 Jul 2025
Government Rice Stocks Soar to Two-Decade High
The government has a lot of rice stored, more than it has in the last 20 years.
This is because they are buying a lot of rice for free food programs.
They have much more rice than they usually need.
Because of this, it might cost more to store the rice.
The government plans to sell some of the rice to companies that make ethanol, and this could help with the storage problem.
Government rice stocks have reached a two-decade high of 37.48 million tonnes (MT).
The increase is primarily due to higher procurement for free ration schemes.
The prescribed buffer for rice is 13.54 MT, significantly less than the current stock.
The government plans to supply 2.8 MT of rice to distilleries for ethanol production.
Rising rice stocks may increase storage costs and food subsidy expenses.
- Who
- The government and the Food Corporation of India (FCI).
- What
- Rice stocks in government warehouses have reached a two-decade high.
- When
- As of July 1st, and the current procurement season 2024-25.
- Where
- Government warehouses.
- Why
- Due to higher procurement and lukewarm response to open market sales.
Government's Perspective
Possible Concerns
Stock Management
Government's Perspective
Maintain adequate rice for public distribution and welfare programs.
Possible Concerns
High storage costs and increased subsidy expenses.
- Current Rice Stock
- 37.48 million tonnes (MT)
- Buffer Stock (July 1)
- 13.54 MT
- Procurement (2024-25)
- 53.11 million tonnes (MT)
- Annual Supply for Welfare Schemes
- 41 MT
- Rice for Ethanol Production (FY26)
- 2.8 MT
- Estimated Food Subsidy (FY25)
- Rs 2.03 lakh crore
