News Capsule: Rice Buffer Stock Carrying Cost Rises More Than Threefold in Five Years
11-Aug-2026 05:56 PM
News Capsule: Rice Buffer Stock Carrying Cost Rises More Than Threefold in Five Years
★ According to government data, the cost of holding rice buffer stocks has increased sharply. In 2024-25, the government spent ₹10,171.71 crore on carrying rice stocks held by the Food Corporation of India (FCI), more than three times the ₹3,143.89 crore spent in 2020-21. The cost stood at ₹5,831.27 crore in 2023-24.
★ As of July 1, 2026, the government held 403.11 lakh tonnes of rice, compared with the prescribed buffer norm of only 135.40 lakh tonnes. This means government stocks were nearly three times the required buffer level.
★ The rising stock is mainly due to the government’s open-ended MSP procurement policy, under which government agencies procure paddy offered by farmers at MSP. At the same time, rice offtake under the NFSA and other welfare schemes has remained lower than procurement, leading to accumulation of surplus stocks in the central pool.
★ Holding these additional stocks is increasing expenses related to storage, interest, transportation and other associated costs. The government is also using the Open Market Sale Scheme (OMSS) to dispose of surplus rice, improve market availability and help control food inflation.