India's Rice Procurement Falls 19 Lakh Tonnes Amid Weak Paddy Arrivals by Amit Gupta, Kedia Advisory
India's rice procurement declined to around 104 lakh tonnes during October 2026, down from over 123 lakh tonnes in the corresponding period last year, as poor paddy arrivals and lower crop yields affected purchases. Punjab procurement remained largely stable at 73.52 lakh tonnes, while Haryana recorded a decline to 26.25 lakh tonnes from 38.79 lakh tonnes. Tamil Nadu and Uttarakhand also reported significant reductions. Lower kharif paddy acreage, which fell to 433.62 lakh hectares from 449.18 lakh hectares, has added to supply concerns. The government has targeted procurement of 715.22 lakh tonnes for the 2026-27 marketing season.
Key Highlights
• India's rice procurement declined to 104 lakh tonnes in October from over 123 lakh tonnes last year.
• Punjab procurement remained stable at 73.52 lakh tonnes against 72.98 lakh tonnes a year earlier.
• Haryana purchases dropped to 26.25 lakh tonnes from 38.79 lakh tonnes, reflecting weaker arrivals.
• Kharif paddy acreage declined to 433.62 lakh hectares from 449.18 lakh hectares year-on-year.
• Government targets 715.22 lakh tonnes of paddy procurement during the 2026-27 marketing season.
India's rice procurement declined to around 104 lakh tonnes during October 2026, compared with over 123 lakh tonnes in the corresponding period last year, as poor paddy arrivals affected government purchases. According to official data, procurement has been significantly lower in Tamil Nadu, Uttarakhand and Haryana, while Punjab, the country's largest contributor to central rice stocks, recorded purchases broadly in line with last year's levels.
Punjab procured 73.52 lakh tonnes of paddy until October 31, marginally higher than 72.98 lakh tonnes a year earlier. In contrast, Haryana procurement declined to 26.25 lakh tonnes from 38.79 lakh tonnes. Tamil Nadu recorded purchases of just 2.87 lakh tonnes against 7.51 lakh tonnes last year, while Uttarakhand procurement fell to over 90,000 tonnes from 3.07 lakh tonnes. Lower arrivals across these states have been attributed to reduced crop production and yields.
The weakness in procurement is also reflected in kharif acreage. Paddy cultivation declined to 433.62 lakh hectares as of October 2, compared with 449.18 lakh hectares during the corresponding period last year. The Agriculture Ministry is yet to release its kharif crop production estimate, which is expected later this month. Meanwhile, procurement operations are scheduled to begin in several other major producing states, including Chhattisgarh, Odisha, Bihar, Assam, Karnataka and Madhya Pradesh, from November 1.
The government has set a procurement target of 715.22 lakh tonnes for the 2026-27 marketing season. It has also revised the broken grain allowance in rice conversion to 15% from 25%, subsequently revising the previous season's procurement figure to 394.05 lakh tonnes.
Lower acreage, weaker arrivals and reduced yields could constrain government procurement, making upcoming crop estimates and arrivals from major producing states crucial for assessing rice supply.
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