India`s Rice Procurement Rises 5% Amid Record Production Forecast by Amit Gupta, Kedia Advisory
India’s rice procurement has reached 41.6 million tonnes (mt) as of January 31, marking a 5% increase from last year. Despite ample stock to address unforeseen challenges, the government struggles with surplus management due to the absence of a permanent offtake policy. While major rice-producing states like Chhattisgarh, Telangana, and Bihar have witnessed increased procurement, Punjab and Haryana have reported declines. The revised nationwide procurement target now stands at 49.561 mt. Meanwhile, the Agriculture Ministry has estimated kharif rice production to hit a record 119.93 mt, up 6% from last year. Experts suggest that a structured policy for surplus disposal is essential to maintain market stability and ensure efficient resource allocation.
Key Highlights
* India’s rice procurement reached 41.6 mt by Jan 31, up 5% YoY.
* Surplus stock management remains a challenge due to no permanent offtake policy.
* Chhattisgarh, Telangana, and Bihar saw higher procurement, while Punjab and Haryana witnessed declines.
* The government revised the kharif rice procurement target to 49.561 mt.
* Kharif rice production is projected at a record 119.93 mt, a 6% increase YoY.
India’s rice procurement has risen by 5% year-on-year to 41.6 million tonnes (mt) as of January 31, 2025. This growth comes amid a record kharif rice production estimate of 119.93 mt, a 6% increase from last year. While procurement is sufficient to meet public distribution needs, the government faces challenges in managing surplus stock due to the absence of a permanent offtake policy.
In key states, Chhattisgarh saw a 15% rise in procurement to 7 mt, while Telangana recorded a 13% increase at 3.574 mt. Bihar reported a 21% jump, reaching 1.68 mt. Meanwhile, Uttar Pradesh and Andhra Pradesh also saw notable growth in procurement. However, Punjab and Haryana recorded declines of 6.4% and 8.8%, respectively. The nationwide rice procurement target has been revised upward to 49.561 mt from the previous 49.211 mt.
With the completion of procurement in Punjab, Haryana, and northern states by December, buying in states like Uttar Pradesh will continue until February. The government has introduced measures like open market sales and selling fortified rice to distilleries, but experts believe these are temporary fixes. A structured, long-term policy is needed to handle surplus efficiently and prevent excessive stock accumulation.
With India’s kharif rice production expected to hit a record, balancing procurement and surplus disposal will be crucial for maintaining market stability. A well-defined strategy for offloading excess stock is necessary to optimize storage and financial resources.
Finally
India’s rice procurement growth highlights a strong agricultural output, but surplus stock management remains a key concern. A well-structured offtake policy is essential for balancing supply and market dynamics effectively.
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