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Informist, Thursday, Aug. 14, 2025

 

--FCI: Wheat stocks 34.7 mln tn Aug 1 vs 26.8 mln yr ago, 35.9 mln month ago 

--FCI: Food grain stocks 72.6 mln tn as of Aug 1 vs 59.6 mln tn year ago 

--FCI: Rice stocks 38.0 mln tn Aug 1 vs 32.8 mln yr ago, 37.8 mln month ago 

 

MUMBAI – Wheat stocks with Food Corp. of India fell more than 3% on month as of Aug. 1, but remained above the buffer norm and were at a four-year high of 34.7 million tonnes for the month. This is the second consecutive fall in wheat stocks since June. Typically, wheat stocks fall from June with the end of procurement operations.

 

As of Aug. 1, wheat stocks in the central pool were 3.3% lower on month, but up 29.5% on year at 34.7 million tonnes, FCI data showed. The current wheat stocks are well above the buffer norm of 27.58 million tonnes--operational stock of 24.58 million tonnes and strategic reserve of 3.00 million tonnes.                              

 

Wheat stocks have risen on year due to higher production and robust procurement during the recent rabi marketing season. The government procures foodgrains to support farmers and meet its public distribution obligations.

 

FCI also offloads excess stocks through open market sales to stabilise market prices. The government is yet to start open market sales of wheat and rice for 2025-26 (Apr-Mar) marketing season. On Jul. 24, Food Secretary Sanjeev Chopra said the government doesn't see any immediate requirement to start open market sales as prices are largely stable and the market has adequate supply. 

 

"There is adequate supply in the market...We only procured (30 million tonnes). We have procured very healthy quantity", Chopra had said on the sidelines of Indian Vegetable Oil Producers' Association. The government typically begins sale of wheat in the open market from July or August.

 

In 2025-26 rabi marketing season ending June, the government procured 30.1 million tonnes wheat, higher than 26.6 million tonnes procured last year. Both the government and private traders had enough stock availability to procure due to good wheat production in 2024-25 (Jul-Jun). 

                                       

Meanwhile, rice stocks in the central pool as of Aug. 1 were nearly 0.5% higher on month and up 16% on year at 38.0 million tonnes. The current rice stocks remain at a two-decade high for August. It is also significantly above the buffer norm of 13.54 million tonnes--operational stock of 11.54 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 additional state bonuses. The government also follows an open-ended procurement policy.

 

With 2025-26 kharif marketing season (Oct-Sep) approaching, the government has planned to reduce the percentage of broken rice in its procurement to 10% from the current 25% starting October, Chopra said at Society of Indian Automobile Manufacturers event on Aug. 11. The idea is to reduce the broken grain percentage, normally 25%, in the rice procured for the central pool.

 

"The rice which Food Corp. of India currently procures has broken rice percentage of up to 25%. We are now doing an experiment beginning October, to bring down the percentage of broken rice to 10(%)," Chopra said. The 15% excess broken rice generated will be auctioned at the mill level, which can be utilised by industries such as ethanol and feed, the secretary added. FCI procures paddy from farmers and mills deliver custom-milled rice as required by FCI. 

 

Meanwhile, total food grain stocks with the FCI as of Aug. 1 were 72.6 million tonnes, up 22% from 60.0 million tonnes a year ago. As of Jul. 1, food grain stocks with FCI were at 73.7 million tonnes, according to data. End

 

Reported by Afra Abubacker

Edited by Deepshikha Bhardwaj

 

 

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