Government Procurement of Paddy and Rice Expected to Increase

06-Nov-2025 08:45 PM

New Delhi. Government procurement of paddy is rampant in northern states, particularly Punjab, Haryana, Uttar Pradesh, and Uttarakhand. Meanwhile, in Tamil Nadu, South India, paddy is also being procured from farmers at the Minimum Support Price (MSP).

Government procurement of paddy is now expected to gain momentum in key producing states like Chhattisgarh, Madhya Pradesh, Telangana, Odisha, Andhra Pradesh, and Bihar. The supply of paddy in the markets will gradually increase.

The central government has increased the minimum support price for paddy by ₹69 for the 2025-26 season, setting it at ₹2,369 per quintal for the general category and ₹2,389 per quintal for the 'A' grade.

Farmers found this support price attractive, leading to an increase in the area under paddy cultivation to an all-time high of 44.1 million hectares.

Good and timely monsoon rains also supported farmers. Although heavy rains and severe floods later damaged the paddy crop in some areas, the remaining crop remained in good condition, and its yield is expected to increase. This could push total rice production to new record levels.

The Food Corporation of India (FCI), in collaboration with its partner state agencies, procures large quantities of rice from farmers at the Minimum Support Price (MSP) and then allocates it to rice millers.

Rice millers custom mill this rice and deliver it to the government agency, known as Custom Milled Rice (CMR), based on a recovery rate of 67 percent.