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Informist, Wednesday, Jun. 11, 2025

 

--FCI: Rice stocks 38.0 mln tn Jun 1 vs 32.5 mln yr ago, 38.1 mln month ago

--FCI: Wheat stocks 36.9 mln tn Jun 1 vs 29.9 mln yr ago, 35.7 mln month ago 

--FCI: Food grain stocks 75.0 mln tn as of Jun 1 vs 62.4 mln tn year ago 

 

NEW DELHI – Rice stocks with Food Corp. of India fell marginally on month as of Jun. 1, but stayed at a two-decade high of 38.0 million tonnes. Wheat stocks rose 3.4% on month amid strong procurement and were at a 4-year high of 36.9 million tonnes, data from the nodal procurement agency showed. 

 

As of Jun. 1, rice stocks in the central pool were 0.3% lower on month, but up 17% on year at 38.0 million tonnes, the data showed. The current rice stocks are far above the buffer norm of 13.6 million tonnes--operational stock of 11.58 million tonnes and strategic reserve of 2.00 million tonnes.                                                                                          

 

According to experts, rice stocks have piled up due to the government's incentives for paddy cultivation, like high minimum support prices and state bonuses. On top of this, it has an open-ended procurement policy. To clear its surplus rice, FCI started to sell the grain twice a week under the open market sales scheme. But offtake remained slow due to tepid demand from traders. 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. 

 

Though the government raised rice allocation for making ethanol, distillers' offtake remains sluggish due to operational issues. Of the 5.2 million tonnes of rice allocated for ethanol production in 2024-25 (Apr-Mar), only 1.3 million tonnes have been lifted so far, according to FCI. Distillers can lift rice from FCI till the end of October. To reduce the stocks, the government also announced it would distribute three months of ration supply--covering June, July, and August--in a single phase starting May 21.

 

With higher wheat production and good procurement, wheat stocks as of Jun. 1 were up 3.4% on month and 23.4% higher on year at 36.9 million tonnes. According to buffer norms, minimum wheat stocks for Apr-Jun should be 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. 

 

Meanwhile, total food grain stocks with the FCI as of Jun. 1 were 75.0 million tonnes, up over 20% from 62.4 million tonnes a year ago. As of May 1, food grain stocks with the FCI were at 73.8 million tonnes, according to the data.  End

 

Reported by Afra Abubacker

Edited by Vandana Hingorani

 

 

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