Paddy-Rice Market Scenario
11-Jun-2025 12:26 PM
Paddy-Rice Market Scenario
Season 2024-25
Government Procurement: Exceeding Targets
Paddy procurement target: 852.47 lakh tons
Actual: 874 lakh tons (procurement surpassed target)
Rice procurement target: 572 lakh tons
Actual: 585 lakh tons (313 from CMR + 272 from unmilled paddy)
★ Procurement increased as paddy prices in the market were below the Minimum Support Price (MSP).
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Comparison with Previous Season (2023-24):
Paddy target: 935.86 | Actual: 816
Rice target: 628.73 | Actual: 546 (537 from CMR + 8.94 from unmilled paddy)
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Massive Rice Stock in the Pool
June 2025: 380 lakh tons
May 2025: 381.5 lakh tons
June 2024: 325.18 lakh tons
June 2023: 262 lakh tons
July buffer norm: 135.4 lakh tons
★ Current stock is nearly three times the buffer norm, leading to significant storage shortages in warehouses.
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★ According to government estimates, rice production in 2024-25 is expected to reach 1490.74 lakh tons, which is significantly higher than 1378.25 lakh tons in 2023-24. This indicates record-level rice production in the country.
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★ The government has launched the Open Market Sale Scheme (OMSS) for traders and the distillery industry. However, uptake has been weak.
★ The shortage of space in government warehouses is creating an imbalance in wheat and rice storage.
★ In the coming period, the monsoon situation will need to be closely monitored. Particularly in Madhya Pradesh, Uttar Pradesh, Punjab, and Haryana, farmers are considering switching from paddy to maize, which could impact kharif sowing.
★ The good news is that rice exports have resumed, and there is potential for acceleration in the coming months.
This could provide temporary support to the market, but the heavy stockpile will likely keep pressure on prices for a longer duration.