MUMBAI: India’s rice inventories in government warehouses climbed nearly 12% from a year earlier to a record high for early December after state-run agencies stepped up procurement of the new-season paddy crop, government data showed.
The swelling stockpiles could allow the world’s biggest rice exporter to boost shipments, putting pressure on supplies from rivals such as Thailand, Vietnam and Pakistan.
State reserves of rice, including unmilled paddy, totalled a record 57.57 million metric tons as of December 1, far exceeding the government’s target of 7.61 million tons for January 1.
Wheat stocks stood at 29.14 million tons on December 1, up from last year’s 20.6 million tons, the data showed.
State-run agencies are being forced to buy large quantities from farmers as open-market prices remain below the government-set minimum support price, said a New Delhi based dealer with a global trade house.
“Despite the government buying heavily, traders still have plenty of stock for exports,” he said.
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Since the start of the marketing year on October 1, the government has procured 42.2 million tons of paddy from farmers.
“Export demand isn’t very strong right now, but the weakening rupee is helping traders land deals at competitive prices,” said one Mumbai-based trader.
The Indian rupee dropped to a record low this month, enhancing returns for traders on overseas sales.
India, which accounts for about 40% of global rice exports, removed the last of its export curbs on the grain last March.
India’s rice exports in the first 10 months of 2025 jumped 37% from a year earlier to 18.49 million tons.
The Rice Exporters Association expects shipments from India to rise by nearly 25% from a year earlier to a record 22.5 million tons this year.
Alongside rice, wheat stocks are at comfortable levels this year, helping the government to manage food grain prices more effectively, the trader said.
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