India has doubled its target for rice sales to private traders under its open market scheme to 5 million metric tons for the 2026/27 financial year, in a move to curb rising prices amid concerns over production.
The government announced the decision on Friday as expectations of lower output raised concerns about domestic supplies.
India’s rice production is expected to decline this year for the first time in a decade, marking its sharpest drop in nearly 20 years, as below-normal rainfall during the crop maturation period threatens to reduce yields, industry officials told Reuters.
Five states impose rice stock limits
The government has also allowed five southern states – Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana – to impose stock limits on rice and paddy until January 31, 2027.
The measure aims to ensure adequate supplies, prevent hoarding and keep prices under control, according to a government statement.
New Delhi said the measures were intended to maintain sufficient rice supplies in the domestic market and curb hoarding and black-market activities.
Open-market sales double from previous year
The government has already sold 2.5 million metric tons of rice to private buyers under the scheme this year, compared with 1.1 million metric tons during the corresponding period last financial year.
The higher sales target is intended to increase the availability of rice in the market as concerns grow over domestic production.
India, the world’s largest rice producer and exporter, has received nearly 13% less rainfall than normal so far during this year’s monsoon season.
