Centre allows five southern states to impose stock limits on rice, paddy; tightens vigil on holdings

The Centre has allowed five southern states to impose stock limits on rice and paddy, wherever necessary, until January 31, 2027, as part of measures to check hoarding and keep prices under control.

The government has also made it mandatory for traders, wholesalers, retailers, big chain retailers and processors/millers across the country to disclose their rice and paddy stocks every Friday on the Food Stock Portal (foodstock.dfpd.gov.in).

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The order, issued on November 6, requires entities to declare stocks under six categories including basmati rice, non-basmati premium rice, non-basmati rice, parboiled rice, broken rice and paddy. Those failing to register on the portal or violating prescribed stock limits will face action under Sections 6 and 7 of the Essential Commodities Act, 1955.

The Centre has conveyed its concurrence to Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana to impose stock limits through appropriate control orders, wherever required. The move is aimed at ensuring adequate market availability and preventing hoarding and black marketing.

Trade and industry experts said deficient and uneven rainfall has contributed to rising rice prices, particularly for premium non-Basmati varieties, and pushed up paddy prices in several markets.

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Separately, the government has decided to allocate additional quantities of Bharat Rice to NAFED, NCCF and Kendriya Bhandar to expand its availability across the country, particularly in southern states. The agencies have been asked to explore different distribution channels to improve access to the subsidised rice.

The Centre has also doubled the rice sale target under the Open Market Sale Scheme (Domestic) [OMSS (D)] for 2026-27 from 25 lakh metric tonnes (LMT) to 50 LMT.

Retail rice inflation rose to 8.25% year-on-year in September from 5.89% in August, with the average retail price at around Rs 48.23 per kg, about 12% higher than a year earlier.

Experts, however, said the situation does not point to a nationwide supply crisis, with price pressures concentrated in regions and varieties where supplies are tight.

According to the government, 25 LMT of rice had already been sold to private parties through OMSS (D) e-auctions up to October 31, 2026, compared with 11 LMT during the corresponding period of the previous financial year.

Premium southern varieties have seen sharper increases, with wholesale Sona Masoori prices quoted at Rs 65-70 per kg, compared with around Rs 50 a month earlier, according to sources.

Kharif paddy acreage for 2026-27 declined by around 4% to 42.68 million hectares, attributed to deficient rainfall. Trade estimates peg rice production for 2026-27 at around 147 million tonnes, compared with a record 154 million tonnes in 2025-26.