The Indian government has revised its rice procurement target for the Kharif Marketing Season (KMS) 2025-26. The new target stands at 46.35 million tonnes, down from 51.16 million tonnes in 2024-25. This sharp cut reflects challenges such as excess stock, erratic weather, and a shift in policy priorities.
Procurement Trends in 2024-25
Between October 2024 and August 2025, India procured 54.52 million tonnes of rice from both kharif and rabi seasons. Despite this large volume, the country still fell short of the 58.48 million tonne target for the year.
The government uses around 41 million tonnes of rice annually for food distribution schemes. In recent years, higher procurement has created excess stock, leading to storage and disposal issues.
Why Did the Government Reduce the Target?
In a meeting with Food Secretaries from States and Union Territories, officials from the Food Corporation of India (FCI) and the Food Ministry set the lower procurement target. Three main factors shaped the decision:
- Excess stock already held in the central pool.
- Weather disruptions, including floods and heavy rainfall that damaged paddy crops in Punjab, Haryana, and Chhattisgarh.
- Diversification push toward millet (Shree Anna) cultivation to improve nutrition and resilience.
States’ Role and Millet Focus
The Centre has urged states to step up millet procurement, with a target of 1.92 million tonnes for 2025-26. This aligns with India’s mission to reduce its dependence on rice alone.
Punjab, which contributed 11.61 million tonnes of rice in 2024-25, may fall short this year due to flood-related crop losses. The Agriculture Ministry will release updated production estimates soon, and procurement figures could change based on those numbers.
Impact on Rice Market and Prices
The revised procurement target is expected to influence rice prices in India, as lower government buying may leave more grain available for private trade and exports. This could create opportunities for exporters, particularly as India remains one of the best rice exporters in India and continues to serve major global markets.
Outlook for 2025-26
With the India Meteorological Department (IMD) predicting higher-than-normal rainfall in September for key rice-growing states, production uncertainty remains. Furthermore, policymakers will keep an eye on the situation closely to ensure a balance between domestic supply, farmer welfare, and export commitments.