Top Rice News: El Niño, Open Sales & Paddy Procurement

Top rice news today highlights rising global prices as El Niño hits key growers, including India, Thailand and Vietnam. Weak rainfall in southern India has cut Sona Masoori and Ponni output, pushing premium rice prices higher despite large food grain stocks. The Centre has sold 2.5 million tonnes under the Open Market Sale Scheme and plans another 2.5 million tonnes, while enforcing weekly stock disclosure to curb hoarding. Meanwhile, paddy procurement in the 2026-27 season fell to about 104 lakh tonnes in the first month from 123 lakh tonnes, as poor arrivals and lower acreage weighed on purchases.

1. Rice Prices Rise Worldwide As El Niño Hits Key Growers

Rice prices are rising globally as El Niño disrupts crop production in major rice-growing countries, including India, Thailand, Vietnam, Indonesia and the Philippines. In India, reduced rainfall in major southern states such as Karnataka, Andhra Pradesh and Telangana has reduced output of popular varieties like Sona Masoori and Ponni. Premium rice prices have surged, resulting in squeezing consumers’ budgets in the country.

Notably, the rise has given a shock since India holds large food grain stocks, which would cushion the market. Even analysts are asking why prices are rising despite rice reserves, and how much El Niño is affecting rice production. This shift is also turning to the role of ethanol policy and rising grain demand, which may be adding to the pressure on supplies and prices. Moreover, authorities and traders will be watching the monsoon’s progress closely in the upcoming weeks.

2. Centre Steps Up Rice Sales, Curbs Hoarding As Prices Climb

The Centre has sold 2.5 million tonnes of rice to private buyers through e-auctions under the Open Market Sale Scheme till October 31. This is against 1.1 million tonnes a year earlier. Another 2.5 million tonnes will be offered in the remaining five months of the financial year to cool the rice prices. According to industry officials, rice output in the southern states is about 30 per cent lower due to drought, with national production down nearly 10 %. In addition, central pool stocks stood at about 38 million tonnes on October 1, far above the 10.25 million tonne buffer norm.

Since November 6, traders, millers and retailers must disclose rice and paddy stocks weekly on the Food Stock Portal, with violators facing action under the Essential Commodities Act. In the aftermath, five southern states may impose stock limits until January 31, 2027, and more Bharat Rice has been allotted to NAFED, NCCF, and Kendriya Bhandar.

3. Rice Procurement Drops in the First Month Of The 2026-27 Season Due to Poor Arrivals

The official data have shown that rice procurement in the 2026-27 season, which began on October 1, has dropped to about 104 lakh tonnes in the first month, from over 123 lakh tonnes a year ago. According to officials, paddy arrivals were lower in all procuring states, which farmers attribute to a smaller crop and reduced yields. Punjab bought 73.52 lakh tonnes, marginally above last year’s 72.98 lakh tonnes. Haryana fell sharply to 26.25 lakh tonnes from 38.79 lakh tonnes, whereas Tamil Nadu managed only 2.87 lakh tonnes against 7.51 lakh tonnes. Not only this, but Uttarakhand's purchases reduced steeply.

The government has set a paddy procurement target of 715.22 lakh tonnes for the season. Buying began on November 1 in Chhattisgarh, Odisha, Bihar, Assam, Karnataka, and Madhya Pradesh, and Gujarat follows on November 16. Additionally, paddy acreage stood at 433.62 lakh hectares, down from 449.18 lakh hectares last year.