FCI Rice Stock Rises; Concerns Persist Despite Record Open Market Sales
26-Aug-2025 09:58 AM
FCI Rice Stock Rises; Concerns Persist Despite Record Open Market Sales
★ The Food Corporation of India (FCI) currently holds over 53 million tons of rice, more than four times the buffer stock norm of 10.25 million tons set for October 1. Out of this, nearly 14 million tons of rice are yet to be received from mills.
★ In 2025-26 so far, around 4.19 million tons of rice have been sold from FCI stocks at subsidized rates under various government schemes.
★ Each year, government agencies and FCI purchase about 52–53 million tons of rice from farmers at the Minimum Support Price (MSP).
★ FCI annually allocates about 36–38 million tons of rice for the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and other welfare schemes.
★ Between April 1 and August 25, 2025, FCI supplied 1.97 million tons of rice for ethanol production, 1.41 million tons for state welfare schemes, 720,000 tons through e-auctions, and 60,000 tons for Bharat Rice.
★ Projections indicate that rice sales in 2025-26 could exceed last fiscal year’s record of 4.63 million tons.
★ In FY 2024-25, FCI allocated a total of 4.63 million tons of rice, of which 1.12 million tons went to social welfare schemes, 1.96 million tons under the Open Market Sale Scheme (OMSS), and 2.3 million tons for ethanol production. In comparison, only 1.54 million tons were sold in FY 2023-24.
★ The government’s economic cost of rice (including MSP, storage, transportation, etc.) was estimated at ₹41.73 per kg at the start of the current fiscal year, and may rise further due to excess stocks.
★ If rice sales do not pick up, there may be a shortage of storage space in warehouses during the upcoming Kharif procurement season.