15 Dec 2025
Bhubaneswar: Odisha is confronting a growing challenge in its rice procurement and storage system as a mounting surplus of parboiled rice (Ushuna rice) continues to strain capacity, with the Food Corporation of India (FCI) reluctant to lift stocks due to weak demand outside the state.
During the current kharif season, the state government procured 92.64 lakh metric tonnes (LMT) of paddy, which translated into 62.62 LMT of milled rice. A significant majority of this volume is parboiled rice, a variety that finds limited acceptance in many consuming states, where raw rice (Arua rice) is preferred.
FCI has cited low inter-state demand for parboiled rice as the primary reason for its hesitation and has repeatedly advised Odisha to shift its milling pattern towards raw rice. However, the state government has yet to issue clear directives to rice millers to alter production.
As a result, large quantities of rice remain unlifted, creating a substantial backlog. Even after meeting Public Distribution System (PDS) obligations, the state is left with an estimated 1.3 LMT of surplus rice, intensifying pressure on storage infrastructure.
To manage space ahead of the next harvest, the government has announced a temporary measure of providing an additional 5 kg of rice to PDS beneficiaries in 19 districts. Plans to auction the excess rice are under consideration, but the process has been delayed due to the absence of a finalized minimum auction price.
The situation is expected to worsen following a recent increase in the minimum procurement price of paddy by ₹800 per quintal, raising it to ₹3,100. The hike, implemented to fulfil an election commitment, has already encouraged farmers to expand paddy cultivation, pointing to a higher harvest in the coming season and an even larger volume of parboiled rice.
Paradoxically, despite the internal surplus, Odisha requires an average of 75 LMT of rice annually to meet consumption needs. Demand for raw rice remains strong among consumers, with around 4.5 lakh quintals of raw rice distributed under the PDS. To bridge the gap, the state imports hundreds of truckloads of raw rice daily from Andhra Pradesh, Chhattisgarh, and West Bengal.
Officials and experts from the Agriculture, Food Supply, and Consumer Welfare departments agree that rebalancing production toward raw rice, in line with consumer preferences, could significantly ease Odisha’s dual challenge of surplus parboiled rice and shortage of raw rice. They argue that policy intervention and milling reforms are urgently required to realign procurement, processing, and distribution with actual demand and ensure long-term sustainability of the state’s rice management system.