Wedoany.com Report-Sept. 18, India’s rice reserves in government warehouses reached a record high for early September, rising more than 14% year-on-year, while wheat inventories climbed to their highest level in four years, according to official data released Wednesday. The increase reflects stronger procurement from farmers and supports the government’s food security and market stability strategies.

A labourer sifts rice crops in a grain market in Karnal in the northern state of Haryana, India, October 15, 2024.

As of September 1, rice stocks, including unmilled paddy, totaled 48.2 million metric tons, well above the government’s target of 13.5 million tons for July 1. Wheat inventories stood at 33.3 million tons, exceeding the official target of 27.6 million tons. These levels give the government greater flexibility in managing supply and prices.

High rice stocks will allow India, the world’s largest rice exporter, to maintain robust shipments. “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 at a global trading firm. India accounts for around 40% of global rice trade and lifted the last of its export restrictions in March 2025.

The Rice Exporters Association forecasts shipments to increase nearly 25% this year compared with 2024, reaching 22.5 million tons, another record. The strong outlook highlights India’s role in meeting international demand while maintaining sufficient domestic reserves.

However, the arrival of the new season’s paddy crop next month could add pressure on storage facilities. A trader noted that managing warehouse capacity will be a challenge for government agencies if stocks continue to expand at the current pace.

For wheat, the improved inventory marks a significant shift from recent years, when low stockpiles raised concerns about supply security. Ample reserves now give the government room to intervene in the open market to stabilize prices if necessary. A Mumbai-based trader said the government could release grain during the upcoming festival season, when demand for wheat typically increases.

India’s major festivals, including Dussehra and Diwali in October, usually drive higher consumption of wheat products. With stocks well above target, authorities are in a stronger position to ensure adequate availability and prevent sharp price increases.

The rise in both rice and wheat reserves underlines the impact of strong harvests and effective procurement. At the same time, growing export volumes for rice show India’s continued importance in global agricultural trade. The combination of high domestic stocks and rising exports reflects a balance between meeting international demand and maintaining domestic market stability.