Wedoany.com Report-Dec.24, India's government rice reserves have reached a new high for the beginning of December, following increased procurement of the fresh paddy harvest by state agencies, according to official data.

As of December 1, reserves of rice, including unmilled paddy, stood at 57.57 million metric tons, significantly above the government's January 1 target of 7.61 million tons.

Wheat reserves on the same date were 29.14 million tons, higher than the 20.6 million tons recorded a year earlier.

State agencies have acquired substantial volumes from farmers, as market prices have stayed below the official minimum support price, noted a dealer in New Delhi associated with an international trading firm.

"Despite the government buying heavily, traders still have plenty of stock for exports," he said.

From October 1, the beginning of the current marketing year, authorities have purchased 42.2 million tons of paddy.

The larger reserves may enable India, the leading global rice exporter, to increase overseas shipments.

"Export demand isn't very strong right now, but the weakening rupee is helping traders land deals at competitive prices," said one Mumbai-based trader.

The Indian rupee reached a new low this month, improving profitability for exporters on foreign sales.

India holds approximately 40% of the worldwide rice export market and lifted its remaining export restrictions on rice in March.

In the initial ten months of 2025, India's rice shipments rose 37% year-on-year to 18.49 million tons.

The Rice Exporters Association anticipates annual exports to grow by nearly 25% compared to the previous year, reaching a new peak of 22.5 million tons.

In addition, the elevated wheat reserves this year provide adequate levels, supporting better management of domestic grain prices, the trader added.

These developments reflect robust procurement and stock positions, contributing to stability in supplies and export capabilities.