India doubles its rice sales target and tightens control over inventories

India increases rice sales to curb price rises

India has decided to double its plan to sell rice from government reserves on the domestic market. In fiscal year 2026/27, 5 million metric tons of rice are set to be auctioned off under the Open Market Sale Scheme (OMSS), instead of the previously planned 2.5 million metric tons. The decision is intended to help curb price increases and increase the availability of rice on the domestic market. The authorities hope this will counteract excessive stockpiling and improve supply to consumers.

Sales at government auctions have already increased significantly. As of October 31, 2026, private buyers had purchased 2.5 million metric tons of rice, compared to 1.1 million metric tons during the same period of the previous fiscal year. This represents more than a twofold increase in sales. The increase in the plan is intended to enable further auctions and facilitate access to the commodity, particularly in markets where rising prices are raising concerns about the situation of consumers.

New obligations for traders and inventory control

Increased rice sales are not the only change. Under a decision dated November 6, traders, wholesalers, retailers, large retail chains, processing plants, and mills must report their inventory levels every Friday. This requirement covers six categories, including basmati rice, parboiled rice, broken rice, and paddy rice. The data is to be submitted through the government’s Food Stock Portal, which will allow authorities to more closely monitor the availability of the commodity and prevent excessive hoarding.

The central government has also authorized five southern states, including Tamil Nadu, Karnataka, and Kerala, to impose rice stockpiling limits if local conditions warrant it. Any such restrictions may remain in effect until January 31, 2027. At the same time, the government has decided to allocate additional quantities of rice for distribution under the Bharat Rice program, which aims to increase the availability of the product at affordable prices. These measures are focused on stabilizing the domestic market; however, their impact on prices will depend on the scale of sales and the availability of rice to consumers.