Global Rice News

India’s Rice Stockpile Doubles, Ensuring Comfortable Supplies for Domestic Market

India, the world’s largest rice exporter, has reported that its rice stocks at the beginning of November were around double its target. This surplus, coupled with the new season crop that is starting to enter the market, indicates that there will be comfortable supplies for the domestic market.

In July, India surprised the market by ordering a halt to non-basmati white rice exports, causing global prices to reach multi-year highs. However, this decision appears to have resulted in an abundance of rice stocks in the country.

According to government sources, India’s rice stocks, including unmilled husk varieties held at state warehouses, totaled 19.7 million metric tons. This exceeds the government’s target of 8.2 million metric tons for the quarter beginning October 1. Additionally, state warehouses must also hold an extra 2 million metric tons of rice as strategic reserves.

The surplus in rice stocks is a positive development for India’s domestic market, which relies heavily on rice as a staple food. It ensures that there will be ample supply to meet the country’s demand.

Indian farmers traditionally start planting summer-sown rice in the months of June and July and begin harvesting the crop in October. The new season crop, along with the purchases made by India’s state-run Food Corporation of India, is expected to further increase rice inventories at state granaries.

However, despite the surplus in rice stocks, India’s new season rice crop is expected to decrease this year due to an inconsistent monsoon. Experts estimate that output could fall by as much as 8% compared to last year’s record crop, despite an increase in the area under rice cultivation.

On a positive note, India’s wheat stocks at state warehouses totaled 21.6 million metric tons, which is more than 23% above the state’s target. This surplus in wheat stocks will enable the government to offer more supplies to bulk consumers such as flour millers and biscuit makers, thereby cooling down prices.

The Indian government has been taking measures to control prices in the market, including selling wheat on the open market. This comes after weather conditions threatened to reduce wheat output, leading to a ban on wheat exports last year.

Overall, the surplus in rice stocks and wheat stocks in India is expected to stabilize prices in the domestic market and ensure a steady supply of these essential commodities.

Source: [Business Standard](https://www.business-standard.com)