Huge stock of rice has become a headache for the government

04-Jul-2025 12:28 PM

New Delhi. The stock of rice in the central pool has reached the highest level in the last 20 years, while the production area of paddy is ahead of last year and major producing states are receiving good monsoon rains.

As of July 1, 2025, the rice stock in the central pool stood at 374.80 lakh tonnes—only 5.10 lakh tonnes less than the 379.90 lakh tonnes recorded on June 1, 2025. Additionally, the government holds 198.90 lakh tonnes of paddy currently being processed.

According to official norms, the central pool should have at least 135.40 lakh tonnes of rice on July 1. The current stock is nearly three times that requirement.

Sales of rice under the Open Market Sale Scheme (OMSS) have remained unsatisfactory. Distribution under the Bharat brand is also limited.

Although state governments, corporations, community kitchens, NGOs, and ethanol manufacturers have been offered rice at subsidised rates, off-take has remained weak. At present, most rice movement is occurring only through the Pradhan Mantri Garib Kalyan Anna Yojana.

Given the current scenario, it appears difficult to reduce the surplus through the Public Distribution System (PDS) alone. The removal of restrictions on commercial rice exports has led to a shift toward private trade, reducing government-level export demand significantly.

In summary, rice continues to flow into the central pool at a strong pace, but withdrawals are slow. The cost of storing and maintaining this large volume is placing a heavy burden on the food subsidy bill. With fresh paddy procurement set to begin in October, the government may face a serious storage crisis.