Rice stock in central pool reaches top level of 297 lakh tonnes

11-Nov-2024 02:35 PM

The rice stock in India's central pool has reached an all-time high of 297 lakh tonnes as of early November 2024, marking a 48.5% increase from the same time last year.

This is nearly three times the required buffer stock and indicates a strong supply situation for the country's rice market.

The increase in stock has been supported by both a robust harvest and the government's measures to regulate the rice export market, allowing for higher domestic procurement of paddy.

During the 2024 Kharif marketing season, rice production is estimated to hit a record 1,200 lakh tonnes, with around 85% of India's rice being harvested during this period.

The government plans to procure 485 lakh tonnes of rice this season, an increase of 22 lakh tonnes from the previous year, further boosting stock levels.

However, this large-scale procurement is creating storage challenges, particularly in Punjab, which is the largest contributor to the central pool.

Despite these challenges, rice availability in the domestic market remains stable, and prices have been relatively steady.

This situation suggests that while supply is abundant, the logistical and storage issues in the coming months could pose challenges for the government, especially as the volume of rice continues to grow throughout the season.