India Doubles Rice Sale Target to 5 Million Tonnes Amid Rising Price Concerns
India has doubled its target for rice sales to private traders under its open market scheme to 5 million metric tonnes for the 2026/27 financial year, aiming to control rising prices and ensure adequate domestic supplies. The government announced the decision on Friday amid concerns over declining rice production and tightening market conditions. India has already sold 2.5 million metric tonnes of rice to private buyers under the scheme this year, compared with 1.1 million tonnes during the corresponding period last financial year.
The move comes as India’s rice production is expected to record its first decline in a decade, potentially marking the steepest fall in nearly 20 years. Below-normal rainfall during the crop maturation period has raised concerns about lower yields. India has received approximately 13% less rainfall than normal during this year’s monsoon season. To prevent hoarding and black marketing, the government has also allowed Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana to impose stock limits on rice and paddy until January 31, 2027.
As the world’s largest rice producer and exporter, India plays a significant role in global rice markets. The government is increasing supplies through its open market scheme to maintain price stability and protect domestic consumers from further increases. The expanded sales target is also intended to discourage stockpiling and ensure sufficient rice availability across the country amid uncertainty over the upcoming harvest.
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