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Informist, Friday, May 16, 2025

 

--FCI: Wheat stocks 35.7 mln tn May 1 vs 26.0 mln yr ago, 11.8 mln month ago 

--FCI: Rice stocks 38.1 mln tn May 1 vs 31.9 mln yr ago, 38.2 mln month ago 

--FCI: Food grain stocks 73.8 mln tn as of May 1 vs 57.9 mln tn year ago 

 

MUMBAI – Rice stocks with Food Corp. of India as of May 1 were at a 21-year high, while stocks of wheat were at a four-year high, data from the nodal procurement agency showed. Stocks of wheat were higher both on a monthly and yearly basis, while rice stocks up on year but down on month. 

 

Rice stocks in the central pool were marginaly lower from 38.2 million tonnes as of Apr. 1, but up 20% on year at 38.1 million tonnes as of May 1, the data showed. The current rice stocks are far above the buffer norm of about 13.6 million tonnes – operational stock of 11.58 million tonnes and strategic reserve of 2.00 million tonnes.

 

The situation is also same when it comes to rice stocks with traders in domestic markets, because of which prices have been steady at the lower end for more than three months now. There is ample supply of rice in local markets as production in both kharif and rabi seasons in 2024-25 (Jul-Jun) was higher than expected. Despite allowing free rice exports, stocks in India have been at an all-time high due to ample supply of the grain in global markets as well, experts and market participants said. 

 

To free up space, the FCI started to sell the grain twice a week under the open market sales scheme. But the offtake remained slow amid the availability of paddy from the new crop across the country. The government also allowed ethanol distilleries to participate in FCI's weekly auctions of rice and allowed them as well as states to buy the grain directly from the FCI through open market sales, without participating in the electronic auction.

 

In an effort to reduce stocks, the government last week announced it would distribute three months of ration supply--covering June, July, and August--in a single phase starting May 21. 

 

Meanwhile, total food grain stocks with the FCI as of May 1 were 73.8 million tonnes, up nearly 28% from 57.9 million tonnes a year ago. On Apr. 1, food grain stocks with the FCI were at 50.0 million tonnes, according to the data.

 

With higher wheat production in the rabi season and robust procurement by the government, stocks of the staple grain with FCI were at a four-year high. Wheat stocks were 35.7 million tonnes as of May 1, 37% higher than 26.0 million tonnes a year ago, data from the nodal procurement agency showed. On a monthly basis, wheat stocks with the FCI were a whooping 202% higher. 

 

Wheat stocks as of May 1 were 28.2 million tonnes above the buffer norms for the quarter. According to the norms, minimum wheat stocks for Apr-Jun should be nearly 7.5 million tonnes--operational stock of 4.46 million tonnes and strategic reserve of 3.00 million tonnes. The government sets the buffer requirement of food grains for every quarter, and FCI has to maintain the mandated level. 

                                                

Higher wheat production and robust procurement also weighed on prices of the grain in local markets. On Thursday, wheat prices in the key market of Kota in Rajasthan were at INR 2,420-INR 2,425 per 100 kg, lower than from INR 2,700-INR 2,750 per 100 kg in March, before the rabi crop arrivals commenced in local markets. Prices in Delhi, the benchmark market, were at INR 2,685 per 100 kg Thursday, down from INR 3,070 per 100 kg in March.  End

 

Reported by J. Navya Sruthi

Edited by Avishek Dutta

 

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