FCI's rice open market sales decline
10-Sep-2025 08:10 AM
FCI's rice open market sales decline
★ The Food Corporation of India’s (FCI) rice sales under the 2025-26 Open Market Sale Scheme have seen a sharp decline.
★ On Thursday, FCI offered 1.28 lakh tonnes of rice but managed to sell only 15,000 tonnes, against expectations of 25,000–26,000 tonnes. FCI had started weekly auctions in August at revised reserve prices, but this time, sales dropped by nearly 10,000 tonnes.
★ Weak demand has been attributed to continuously falling prices over the past nine months and FCI’s lengthy auction process. Traders find it easier to procure rice from other sources, while FCI’s procedures remain time-consuming.
★ Additionally, expectations of new paddy arrivals from October have also put pressure on market sentiment. So far, paddy has been sown across 432 lakh hectares, up 6.6% compared to last year.
★ Rice supply for ethanol production has also been slow. Out of the allocated 52 lakh tonnes, only 23.6 lakh tonnes (45.5%) have been sold so far. The government expects total lifting to reach only around 30 lakh tons by October.
★ As of August 1, rice stocks in the central pool stood at 380 lakh tonnes — up 16% from last year and the highest level in two decades.
★ For the upcoming 2025-26 kharif marketing season, the Centre has set a procurement target of 463.5 lakh tons, slightly lower than last year’s 485 lakh tons.