News Capsule: India’s Rice and Wheat Output Seen at Record Levels, Drop in Oilseed: USDA
12-Dec-2025 10:23 AM
News Capsule: India’s Rice and Wheat Output Seen at Record Levels, Drop in Oilseed: USDA
★ According to the latest report by the US Department of Agriculture (USDA), India’s rice production is projected to touch a record 152 million tonnes in the 2025–26 crop year. Favourable monsoon conditions, wider adoption of high-yielding varieties, and an expansion in sown area across key states are cited as the major drivers of this growth.
★ Wheat production is also estimated to rise to 117.9 million tonnes, strengthening the country’s overall foodgrain availability.
★ Higher output may exert downward pressure on domestic prices of non-basmati rice, while ensuring adequate supplies for government procurement and the Public Distribution System (PDS).
★ The surge in production may also give India an additional edge in the global rice market. With major exporters such as Thailand and Vietnam currently offering rice at higher prices, India’s competitive position is expected to improve further.
★ On the other hand, the USDA has lowered its estimate for India’s oilseed production to 40.3 million tonnes, which could increase the country’s dependence on edible oil imports. This shortfall may keep domestic soyabean and mustard oil prices elevated.
★ Overall, while record rice output brings positive signals for farmers and the government, the decline in oilseed production poses a new challenge for policymakers.