India’s Rice Stocks Rise To A Record High, Paddy Procurement Drives Export Growth
The government data showed that India’s rice stock in government warehouses reached around 12 per cent from a year earlier to a record high for early December after state-run agencies stepped up for paddy procurement of the new season. The growing reserve could enable the world’s biggest rice exporter to boost shipments and put pressure on supplies from rivals such as Thailand, Vietnam and Pakistan.
The govt. has done paddy procurement of 42.2 million tons
Interestingly, state reserves of rice with the unmilled paddy aggregated a record 57.57 million metric tons as of December 1, surpassing the government’s target of 7.61 million tons for January 1. Furthermore, according to the data, Wheat stocks were around 29.14 million tons on December 1, an increase from last year’s 20.6 million tons. State-run agencies are being forced to purchase large quantities from farmers as open-market prices remain below the government-set minimum open-market prices said a New Delhi-based dealer with a global trade house. He stated that despite the government purchasing heavily, traders still have plenty of stock for exports.
Since the start of the marketing year on October 1, the government has done the paddy procurement of 42.2 million tons from farmers. In addition, one Mumbai-based trader cited that export demand isn’t very strong right now, but the weakening rupee is helping traders land deals at competitive prices. The Indian rupee fell at a record low this month, improving returns for traders on overseas sales.
India accounts for about 40 per cent of global rice exports
Notably, India accounts for about 40 per cent of global rice exports. It discarded the last of its export curbs on the grain last March. India’s export curbs in the first 10 months of 2025 reached 37 per cent from a year earlier to 18.49 million tons. Moreover, the Rice Exporters Association anticipates shipments from India to increase by 25 per cent from a year earlier to a record 22.5 million tons this year. The trader stated that apart from rice, wheat stocks are healthy this year, which enables the government to regulate food grain prices more effectively.