At the beginning of December, India's rice stocks soared to a record high, surpassing the government's goal by more than five times and possibly increasing exports from the largest exporter of the staple food in the world.
 

India’s Rice & Wheat Reserves

According to data gathered by the Food Corporation of India, state granaries' rice reserves, including unmilled paddy, stood at 44.1 million metric tons on December 1st, against the government's target of 7.6 million tons.
Wheat stocks on December 1 stood at 22.3 million tons, compared to a target of 13.8 million tons.

Impact of Higher than Usual Rice Supplies
 

Higher rice stocks would allow India to increase shipments while maintaining domestic supplies. Last year's patchy monsoon rains prompted New Delhi to restrict exports of all grades. The expectation of a bumper crop prompted India to lift export restrictions on all rice grades except broken rice.

In the midst of overflowing grain bins, Indian farmers harvested a record rice crop of 120 million tons during this year's summer season, accounting for nearly 85% of total rice production.

As the new crop arrives, stocks at the Food Corporation of India are expected to rise further in the coming months, raising storage concerns in the world's second-largest rice producer.

The Food Corporation of India expects to purchase 48.5 million metric tons of new summer-sown rice in the marketing year that began Oct. 1, up from 46.3 million tons purchased from farmers in 2023-24.
Farmers expanded planting areas in response to this year's heavy monsoon rains.

Unlike rice, wheat cannot be exported from India. Indian wheat prices have reached a new high due to strong demand, limited supplies, and a delay in the release of stocks from government warehouses to supplement supplies.

REFERENCE- reuters.com