News Capsule: Increase in Government Procurement of Rice
03-Dec-2025 08:43 AM
News Capsule: Increase in Government Procurement of Rice
★ Procurement has stopped in Punjab and Haryana but continues in other states.
★ As of December 1, total government procurement reached 19.414 million tonnes, compared to 17.224 million tonnes in the same period last year — a 13% increase.
★ In Punjab, procurement fell 4% from 10.917 million tonnes in 2024–25 to 10.48 million tonnes in 2025–26.
★ In Uttar Pradesh, procurement dropped 18.8% from last year to 0.605 million tonnes, and in Chhattisgarh it slipped 2.1% to 0.63 million tonnes.
★ Tamil Nadu saw the sharpest rise, with procurement jumping 188.3% to 0.986 million tonnes compared to the same period last year.
★ In Haryana, procurement improved 30.4% to reach 3.596 million tonnes.
★ Once again, rice stocks in the central pool appear to be rising. The country already has a large surplus of rice stocks.
★ A major portion of rice consumption is only in ethanol blending; consumption under the OMSS scheme remains very weak.
★ With increasing stocks, slow exports, and weak domestic demand, prices continue to face downward pressure.
★ The rice market has been suffering from low prices for a long time, and the chances of a price rise remain limited.