18 Sept 2025
India’s state-held rice reserves have surged to a record 48.2 million tons as of September 1, sharply exceeding the government’s July 1 buffer target of 13.5 million tons, official data showed on Wednesday. The bumper stocks mark a 14% increase from a year earlier and reinforce India’s dominance as the world’s largest rice exporter.
Wheat inventories have also climbed, reaching 33.3 million tons, the highest level in four years and well above the government’s target of 27.6 million tons. The stronger stock position follows aggressive procurement from farmers and is expected to provide the government flexibility to stabilize prices through open market sales, especially during the upcoming festival season.
“Rice exports are rising. India is set to export a record quantity this year, but stocks remain high due to last year’s record crop,” said a New Delhi-based dealer with a global trading firm.
India, which supplies about 40% of global rice exports, lifted the last of its restrictions on overseas shipments in March 2025. According to the Rice Exporters Association, exports are projected to jump nearly 25% year-on-year to 22.5 million tons, setting a new record.
With the new paddy harvest due to arrive next month, government agencies may face storage constraints despite record reserves. However, analysts say robust wheat inventories will help ease inflationary pressures. A Mumbai-based trader noted that with ample supplies, the government is well-positioned to intervene in the market to keep wheat prices stable during Dussehra and Diwali in October, when demand typically peaks.