Storage crisis will increase if there is a great production of rice

01-Jul-2025 08:39 PM

New Delhi. According to official data, there was a direct stock of around 390 lakh tonnes of rice in the central pool as of June 1, 2025. In addition, over 320 lakh tonnes of paddy were also in stock, equivalent to approximately 230 lakh tonnes of rice.

With government warehouses already filled to capacity and Kharif paddy cultivation underway, concerns are mounting about a potential storage crisis if production sees a substantial increase.

The production area of paddy had risen to 35.02 lakh hectares by June 27, 2025—an increase of 47 percent compared to 23.78 lakh hectares on the same date last year.

Most of the paddy is planted during August, coinciding with peak monsoon activity across the country. The India Meteorological Department has predicted above-normal rainfall in July, which could further boost paddy acreage.

To encourage sowing, the Central Government has raised the minimum support price (MSP) of paddy by ₹69—setting it at ₹2369 per quintal for the general category and ₹2389 per quintal for 'A' grade. This price assurance and guaranteed procurement by the government have boosted farmer confidence.

However, a sharp increase in paddy and rice production could pose a serious challenge in terms of safe storage. Government warehouses have limited vacant capacity,

and the arrival of the new paddy crop is expected to begin in October, followed by rice in November. Over the next three to four months, the government will need to make significant efforts to offload existing rice stock to make space.

While a large volume of rice is procured for the central pool, the government has also raised the sale price of rice under the Open Market Sale Scheme (OMSS) and other channels, which may reduce the pace of stock lifting and further complicate the storage situation.