India doubles rice sales target to 5 mln tons amid price concerns

India has doubled its target for rice sales to private traders under the government’s Open Market Sale Scheme (OMSS) to 5 mln tons in the 2026/27 FY. The decision comes amid concerns over a smaller harvest and further increases in domestic prices. The government aims to ensure adequate rice supplies, stabilize the market and prevent speculative stockpiling.

According to industry estimates, India’s rice production could decline this year for the first time in a decade, with the drop potentially becoming the largest in nearly 20 years. The main reason is unfavorable weather during the crop’s maturation period. Monsoon rainfall has been approximately 13% below the long-term average, raising concerns about lower yields in the country’s major rice-producing regions.

Under the government intervention program, India has already sold 2.5 mln tons of rice to private buyers, compared with 1.1 mln tons during the corresponding period of the previous financial year. Sales have therefore more than doubled. The expansion of government supplies is intended to improve rice availability on the domestic market and curb price increases amid uncertainty over production prospects.

In addition, the government has authorized five southern states — Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana — to impose limits on rice and paddy stocks until January 31, 2027. These measures are designed to prevent speculation, artificial shortages and excessive stockpiling by traders. At the same time, the authorities aim to maintain stable domestic rice supplies even if production forecasts deteriorate.

India remains the world’s largest rice producer and exporter, meaning that a potential decline in production and tighter government regulation could affect not only domestic prices but also international trade. Increased sales from government stocks are currently aimed primarily at stabilizing the domestic market. However, future export policy will depend on actual production volumes, inventory levels and price developments in the coming months.

Tags: rice, India