Centre tightens rice stock rules as prices rise, allows 5 states to set limits

• Centre mandates weekly stock declarations for rice and paddy traders across India.

• Five southern states get approval to impose stock limits until 31 January 2027.

• Deficient rainfall and lower acreage fuel price pressures, particularly in premium rice varieties.

With rice prices climbing amid deficient and uneven monsoon rainfall, the Centre on Friday, 6 November directed traders, wholesalers, retailers, processors and millers across the country to declare their rice and paddy stocks. It has also authorised five southern states to impose stock limits to curb hoarding and check further price increases.

Under an order dated 6 November, all traders, wholesalers, retailers, large retail chains, processors and millers across states and Union Territories will have to declare their holdings under six categories — Basmati rice, non-Basmati premium rice, non-Basmati rice, parboiled rice, broken rice and paddy.

All units holding stocks must update their details on the food stock portal every Friday, the ministry of consumer affairs, food and public distribution said in a statement. Units that fail to register on the portal or violate the prescribed stock limits will face action under Sections 6 and 7 of the Essential Commodities Act, 1955.

In a separate letter, also dated 6 November, the Centre gave its consent to Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana to impose stock limits on paddy and rice through control orders.

The restrictions will remain in force until 31 January 2027. The Centre and the respective state governments will monitor their implementation to ensure adequate availability and prevent hoarding and black marketing, an official statement said.

The government has also initiated additional supply-side measures to ease price pressures. It is allocating extra rice stocks to NAFED, NCCF and Kendriya Bhandar for retail sale under the Bharat Rice brand, and has asked these agencies to explore all possible distribution channels, particularly in southern states.

In another move to increase market availability, the Centre has doubled its target for rice sales through e-auctions under the Open Market Sale Scheme (Domestic) for 2026-27 from 25 lakh tonnes to 50 lakh tonnes.

Around 25 lakh tonnes had already been sold to private buyers by 31 October, against 11 lakh tonnes during the corresponding period last year.

Trade and industry experts attributed the rise in rice prices to deficient and uneven rainfall, which has affected supplies and pushed up paddy prices in several markets. The impact has been particularly pronounced in premium non-Basmati varieties.

Retail rice inflation climbed to 8.25 per cent year-on-year in September, up from 5.89 per cent in August. The average retail price stood at around Rs 48.23 per kg, approximately 12 per cent higher than a year earlier.

Experts, however, cautioned against viewing the situation as a nationwide supply crisis. With government rice stocks remaining comfortable, they said, price pressures are concentrated in regions and varieties where supplies are relatively tight.

Premium varieties in southern markets have witnessed particularly sharp increases. Wholesale Sona Masoori prices, according to trade sources, have risen to Rs 65-70 per kg from around Rs 50 a month ago.

The concerns over availability come against the backdrop of a decline in kharif paddy acreage. Sown area for the 2026-27 season fell by around 4 per cent to 42.68 million hectares, attributed largely to deficient rainfall.

Trade estimates peg rice production in 2026-27 at around 147 million tonnes, down from a record 154 million tonnes in 2025-26.

With PTI inputs