Rice stock in central pool reaches top level in two decades

03-Jul-2025 05:10 PM

New Delhi. The rice stock in India's central pool has risen to 374.80 lakh tonnes, marking the highest level for this period in the past 20 years and nearly three times the minimum required buffer stock.

This surge is primarily due to increased paddy procurement under the price support scheme and low offtake of rice under the Open Market Sale Scheme (OMSS).

While this abundance supports food security, it also poses challenges for safe storage and puts pressure on the government's food subsidy bill.

On June 1, 2025, the central pool held 379.90 lakh tonnes of rice, which decreased slightly by 5.10 lakh tonnes to 374.80 lakh tonnes on July 1. This figure excludes 198.90 lakh tonnes of paddy, which is yet to be milled into rice. As per norms, the central pool is required to maintain a minimum stock of 135.40 lakh tonnes of rice as of July 1.

In the ongoing marketing season of 2024–25 (October–September), total government rice procurement exceeded 531.10 lakh tonnes, higher than 525.40 lakh tonnes in the previous season.

Annual demand for rice under welfare schemes, including the Pradhan Mantri Garib Kalyan Anna Yojana, is around 410 lakh tonnes.

According to senior officials, during the last four marketing years, rice procurement has consistently averaged over 550 lakh tonnes annually, while consumption has remained lower.

This has led to an annual surplus of 100–120 lakh tonnes accumulating in the central pool, pushing current stock levels to an all-time high.

The stagnant stock is increasing storage and maintenance costs, which could significantly raise the government’s food subsidy burden.

Furthermore, with the arrival of new paddy expected in just three months, government agencies may face severe challenges in managing safe storage of the growing rice reserves.