Centre Doubles Open Market Rice Sales Target to 5 Million Tonnes

The Centre has decided to put more rice into the market as prices rise in several parts of the country. It has doubled its open market sale target for FY27 to 5 million tonnes from the earlier 2.5 million tonnes. 

As per news reports, half of that target has already been achieved. By October 31, 2026, the government had sold 2.5 million tonnes of rice through e-auctions, compared with 1.1 million tonnes during the same period last year. Another 2.5 million tonnes is now planned for sale in the remaining months of the financial year. 

Southern States Face Production Pressure 

Supply concerns have been building in Karnataka, Andhra Pradesh, Telangana, Tamil Nadu and Kerala. As per news reports, rice production in these states is estimated to be around 30% lower because of drought and poor rainfall. 

Premium varieties such as ponni and sona masuri have been under greater pressure. Overall rice production in India is estimated to be about 10% lower than last year. 

Government Draws on Large Rice Stocks 

The government has sizeable stocks available for additional sales. Rice stocks in the Central pool stood at around 38 million tonnes on October 1, 2026, well above the buffer stocking norm of 10.25 million tonnes. 

Along with open market sales, the Centre has decided to allocate more Bharat Rice to NAFED, NCCF and Kendriya Bhandar. The agencies have been asked to widen distribution, especially in the southern states. 

Stock Limits and Weekly Disclosure 

Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana have been allowed to impose stock limits on rice and paddy where required until January 31, 2027. 

Traders and other entities are also required to declare their rice and paddy stocks every Friday on the Food Stock Portal. 

Read More: NTPC, IOCL Among Central PSUs Committing ₹2 Trillion to Uttar Pradesh's Energy Sector! 

Conclusion 

The Centre is responding to tighter supplies by releasing more rice from government stocks. With the annual sale target now at 5 million tonnes, the focus is on improving availability as production concerns continue in parts of southern India. 

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