India's rice stocks surge to record high
- By Reuters -
- Dec 14, 2024
Rice inventories in India surged to a record high at the start of December, reaching more than five times the government’s target and potentially boosting overseas shipments from the world’s biggest exporter of the staple food.
Rice reserves, including unmilled paddy, in state granaries totalled 44.1 million metric tons on Dec. 1 against a government target of 7.6 million tons, data compiled by the Food Corporation of India showed.
Wheat stocks on Dec. 1 stood at 22.3 million tons against a targetted 13.8 million tons.
Higher rice stocks would allow India to boost shipments without jeopardising domestic supplies. Last year’s patchy monsoon rains led New Delhi to restrict exports of all grades.
The expectation of a bumper crop prompted India to remove export curbs on all rice grades, except for broken rice.
In the middle of overflowing grain bins, Indian farmers have gathered a record rice crop of 120 million tons from this year’s summer season, which accounts for nearly 85% of total rice output.
As the new crop rolls in, stocks at the Food Corporation of India are set to increase further in the months to come, raising storage concerns in the world’s second-biggest rice producer.
The Food Corporation of India is expected to buy 48.5 million metric tons of the new summer-sown rice in the marketing year that began on Oct. 1, up from 46.3 million tons bought from farmers in 2023-24.
This year’s copious monsoon rains prompted farmers to expand planting areas.
Unlike rice, India does not allow wheat exports.
Indian wheat prices have jumped to a record high due to strong demand, limited supplies, and a delayed release of stocks from its government warehouses to augment supplies.