India's Rice Procurement Soars by 5%: Key Highlights

India's rice procurement surged by 5% during the 2024-25 marketing season, reaching 45.84 million tonnes (mt) by February 28, compared to 43.84 mt in the same period last year. The season, which began on October 1, saw strong procurement against a record kharif rice production of 119.93 mt. With current purchases covering more than 38% of the total output, experts believe the government may not need to buy much more rice this season.

Bihar, UP, and MP Lead Procurement Gains

In Bihar, rice procurement ended on February 15, with purchases climbing to 2.63 mt from 2.06 mt last year. Uttar Pradesh also posted an 8% increase, reaching 3.86 mt from 3.58 mt. Meanwhile, Madhya Pradesh saw procurement rise slightly to 2.92 mt, up from 2.82 mt a year ago.

Chhattisgarh and National Procurement Targets

Chhattisgarh's procurement concluded on January 31, with 7 mt of rice purchased, just shy of last year's 7.4 mt. However, the final accepted quantity last year was 8.3 mt after discussions between the Centre and the state. The Food Corporation of India (FCI) aims to buy around 41 mt of rice annually to support government welfare schemes. The Centre set a target of 49.56 mt from the kharif crop and an additional 7 mt from the rabi crop this year.

State-Wise Procurement Performance of Rice

Why Strong Rice Procurement Matters for Food Security

The robust rice procurement is crucial for India's food security, especially as rice substituted wheat in many public distribution systems in 2024-25 due to reduced wheat procurement. With a total rice procurement of 52.54 mt last year from kharif, rabi, and zaid seasons, strong rice stocks provide a safety net in case of wheat supply challenges.

Awaiting Revised Crop Production Estimates

The Agriculture Ministry has yet to release revised crop production estimates for the 2024-25 crop year, combining both kharif and rabi rice production figures. These updates will offer a clearer picture of the country's food grain availability and help shape future procurement strategies.

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