India: FCI set to launch direct rice sales to public on 14 November 2025

The Food Corporation of India (FCI) is set to launch direct sales of rice to consumers for the first time, beginning 14 November at Delhi’s annual trade fair. The initiative will feature premium and parboiled rice and is aimed at assessing consumer feedback as the government explores retail-level grain sales to manage surplus stocks.

The move comes as FCI looks to liquidate its large central pool inventory, which stood at 44.96 million tonnes (mnt) of rice as of 1 October, including 13.92 mnt in the form of paddy. The volume is more than four times the prescribed buffer norm of 10.25 mnt.

With cooperative retail chains showing limited traction in offloading surplus, FCI is testing direct consumer engagement as an alternative channel. A similar effort at the recent World Food India exhibition in Delhi saw 100 t of rice sold to visitors, encouraging officials to replicate the model at the upcoming trade fair.

Parallel to the retail experiment, FCI has rolled out a flexible bulk sale model allowing large traders to buy directly from depots through e-tenders. The first tender, issued on 17 October offers 460,000 t of rice at a reserve price of INR 2,800 per quintal, with bidding has opened on 22 October.

Unlike the ongoing Open Market Sale Scheme (OMSS), which caps purchases between 1-7,000 t per bidder per zone, the new bulk mechanism permits bids from 10,000 to 50,000 t. Rice will be sold in multiples of a rake load-equivalent to 2,650 t-to single or grouped buyers under one lead bidder. Successful bidders will be required to specify the destination railhead to the respective FCI regional office.

All rice sold under the bulk tender is restricted to domestic trade and cannot be exported. For the first round, Uttar Pradesh, Bihar, Jharkhand, West Bengal, Assam, Gujarat, Maharashtra, and Karnataka have each been allocated 50,000 t, while smaller volumes have been earmarked for Delhi, Rajasthan, Kerala, and the northeastern states.

Officials say the retail initiative could pave the way for future consumer-facing models if the response is favorable. With Delhi hosting a large migrant population preferring rice varieties from their home states, FCI plans to showcase regional grains such as Telangana’s parboiled rice, likely priced around 3035 per kg.

If the direct-sale experiment gains traction, it could provide the government with an additional channel to offload excess rice stocks while gauging urban consumer demand patterns for different grain varieties.

Tags: price, rice, sales, stocks, The Food Corporation of India