India's Rice Inventory Reaches Record Levels Amid Export Curbs

India's rice stock surged to a record 29.7 million metric tons due to export restrictions, allowing the country to boost exports. The current surplus, largely from increased monsoon-driven production, is causing storage concerns. Farmers face delays and losses as wholesale markets struggle to manage incoming crops.

India's rice inventories have reached a record high of 29.7 million metric tons this November, nearly three times the government's target, according to sources. This unprecedented surge in stocks has resulted from export restrictions imposed over the last two years, increasing local supplies significantly.

This stockpile could enable India, the top rice exporter globally, to enhance its shipments without impacting domestic availability. Currently, state granaries house 29.7 million tons of rice—a 48.5% rise from the previous year. As the country welcomes a record rice crop of 120 million tons from the summer season, storage worries grow for the world's second-largest rice producer.

The Food Corporation of India plans to purchase 48.5 million tons of rice in the current marketing year, raising concerns over storage capacity. While export restrictions were placed due to prior monsoon unpredictability, increased planting and monsoon rains have altered the situation. Farmers, facing delays at wholesale markets, are incurring losses due to the backlog and market dynamics.

(With inputs from agencies.)