The Centre has doubled its target for rice sales through e-auctions under the Open Market Sale Scheme (Domestic) for 2026-27 to 50 lakh tonnes (lt). The decision comes after 25 lt of rice were sold during the seven months up to October, compared with 11 lt during the corresponding period last year.
The government has also directed cooperatives such as NAFED, NCCF and Kendriya Bhandar to expand their distribution networks across the country, with particular emphasis on the southern States.
These agencies have been asked to explore all possible distribution channels to improve the availability and accessibility of ‘Bharat Rice’ for consumers. According to a statement issued by the Food Ministry, the cooperatives are also receiving additional allocations under the Bharat Rice programme.
“The initiative is expected to augment market supplies, improve consumer access to rice at affordable prices and contribute to moderating retail prices,” the ministry stated.
The move comes amid rising retail rice inflation, which increased to 8.25 per cent year-on-year in September from 5.89 per cent in August. The average retail price of rice stood at around ₹48.23 per kg, approximately 12 per cent higher than the price recorded a year earlier.
However, the cooperatives had shown limited interest in the Bharat Rice programme last year, despite the government’s allocation of rice under the initiative.
Major Factors Behind Rising Rice Prices
Reduced paddy cultivation during the Kharif season, coupled with deficient and uneven rainfall across several States, has been identified as a major factor contributing to this year’s rice price inflation. The impact has been particularly significant in premium non-Basmati rice varieties.
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To strengthen domestic supply management and prevent further price increases, the government has directed traders, retailers, wholesalers, processors and rice millers across the country to declare their rice and paddy stock positions.
The Food Ministry has made it mandatory for traders, wholesalers, retailers, large retail chain operators, processors and millers across all States to submit their stock details online every Friday through the designated government portal. The declaration must cover Basmati Rice, Non-Basmati Premium Rice, Non-Basmati Rice, Parboiled Rice, Broken Rice and Paddy.
Additionally, the Centre has conveyed its concurrence to Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana to impose stock limits on both rice and paddy through appropriate control orders wherever necessary. These limits, if imposed, will remain in force until January 31, 2027.
The ministry said these measures are intended to ensure adequate domestic supplies, maintain price stability, prevent hoarding and black marketing, and safeguard consumer interests. The Centre and State governments will jointly monitor their implementation.
Kharif Rice Production Estimate Delayed
Meanwhile, the area under Kharif paddy cultivation, covering both Basmati and non-Basmati varieties, declined by approximately 4 per cent to 42.68 million hectares during 2026-27. Deficient rainfall in several States has been identified as the primary reason for the reduction in cultivated area.
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Although the government has not yet released its first official production estimates, trade and industry sources have projected Kharif rice production for 2026-27 at around 112-115 million tonnes (mt).
This represents a potential decline compared with the 124.76 mt of rice produced during the Kharif 2025-26 season.
With lower paddy acreage, uneven rainfall and rising retail prices posing challenges to the domestic rice market, the Centre’s decision to increase Bharat Rice allocations and strengthen distribution networks is aimed at improving market availability and ensuring that consumers have access to rice at affordable prices.
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