EL7.AI
CommoditiesMedium•6 November 2026•
4 min read

India Raises Rice Sales Target to 5 Million Tonnes in 2026/27

Key Facts

1India raised its rice sales target through auctions to 5 million metric tonnes for fiscal year 2026/27.
2The government had sold 2.5 million metric tonnes by October 31, 2026, compared with 1.1 million tonnes over the corresponding period of the previous year.
3Rice output is likely to decline for the first time in a decade, with the biggest drop in about 20 years.
4Government stocks of rice and paddy reached 59.6 million tonnes on September 1, against a target of 10.3 million tonnes on October 1.
5Stock limits that five southern states may impose remain in force until January 31, 2027.

On November 6, India doubled its target for rice sales to traders through auctions under its Open Market Sale Scheme to 5 million metric tonnes in fiscal year 2026/27, from 2.5 million tonnes, Reuters reported. The increase comes as domestic prices begin to rise amid concerns about lower output, according to the report. The move aims to increase supplies available to traders in the domestic market. The Ministry of Consumer Affairs, Food and Public Distribution said government interventions are intended to ensure domestic supplies, stabilize prices and prevent hoarding. The ministry added that it is monitoring grain prices, particularly rice, as part of these measures.

The government had sold 2.5 million metric tonnes to private buyers through the scheme’s auctions by October 31, 2026, compared with 1.1 million tonnes over the corresponding period of the previous fiscal year, according to ministry data published by the Press Information Bureau of India. The comparison shows that larger volumes were offered and sold before the announcement of a higher target for the next fiscal year. Sales rely on auctions that make government rice available to private buyers. The new target sets a higher ceiling for the volumes the government plans to offer through this channel. This comes as authorities monitor domestic prices and work to bolster supply.

Indian rice output is likely to decline this year for the first time in a decade, and the potential drop could be the biggest in about 20 years, industry officials told Reuters. The report said below-average rainfall is threatening crops during their maturation period, conditions that could reduce yields. The report does not describe the cause as a confirmed drought, but links concerns to a rainfall shortfall and a prolonged dry spell. The season’s outlook matters because more than 40% of India’s kharif rice area is largely unirrigated, according to the U.S. Department of Agriculture. The department said the timing and distribution of 2026 monsoon rainfall throughout the season are crucial to its outlook for the 2026/27 marketing-year crop.

The announcement of a higher auction target followed a rise in Indian rice export prices to their highest level in more than a year, Reuters reported, as domestic prices climbed on expectations of lower output. The government, meanwhile, said its rice stocks, including paddy, reached a record 59.6 million tonnes on September 1, 2026. That stockpile far exceeded the government’s target of 10.3 million tonnes on October 1. The figures indicate the scale of government reserves available as concerns about the crop and prices mount. The higher sales target coincided with other measures to monitor stocks and expand supplies for consumers.

In an order dated November 6, 2026, the government required traders, wholesalers, retailers, large retail chains, processors and millers in all states and union territories to disclose their rice and paddy stocks. These entities must update stock data every Friday through the Food Stock portal, according to the ministry. The disclosures cover six categories: basmati rice, premium non-basmati rice, non-basmati rice, parboiled rice, broken rice and paddy. The central government also approved allowing Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana to impose stock limits when needed. The limits remain in force until January 31, 2027.

On the consumer supply front, the government allocated additional quantities of “Bharat” rice to the NAFED, NCCF and Kendriya Bhandar agencies, with a particular focus on southern states. The ministry said the rice is sold under this brand at subsidized prices, and that the higher allocations aim to broaden its availability and help ease retail prices. It said the initiative is expected to boost market supplies and improve consumers’ access to affordable rice. This channel supplements auctions for private buyers and stock-reporting measures. The stock limits granted to southern states remain in force until January 31, 2027.