India's granaries overflow as rice stocks hit record, wheat surges

MUMBAI: India’s rice stocks in government warehouses rose 18% from a year ago to a record high for the start of June, while wheat stocks have hit their highest level in four years on higher procurement from farmers, official data showed on Wednesday.

Record rice stocks will help the world’s biggest exporter increase shipments, while an improvement in wheat inventories will help the federal government tame any price spikes later this year by increasing open market sales.

State reserves of rice, including unmilled paddy, totalled a record 59.5 million metric tons as of June 1, far exceeding the government’s target of 13.5 million tons for July 1.

Wheat stocks stood at 36.9 million tons on June 1, well above the government’s target of 27.6 million tons, the data showed.

“Rice stocks have piled up way too much. The government really needs to bring them down before the next buying season kicks off in October,” said a New Delhi-based dealer at a global trading firm.

India, which accounts for around 40% of global rice exports, removed the last of its export curbs on the grain in March 2025, with the initial restrictions having been imposed in 2022.

Wheat stocks have risen to a comfortable position mainly because of higher procurement, which will help New Delhi sell more wheat to bulk consumers during the lean supply season, said a Mumbai-based dealer.

The government has so far brought 30 million tons of wheat from farmers, the most in four years, according to data compiled by Food Corporation of India (FCI).

Disappointing harvests in the past three years and lower purchases by the FCI had pushed up prices of the staple grain and raised expectations that India may be forced to import wheat for the first time in seven years.

But the buildup in stocks this year means the country should be able to meet domestic demand without imports.