Central-Pool rice stocks reach 20-Year high
India now has a massive 37.5 million tons of rice in central storage, more than triple the official buffer norm.
This surge is thanks to heavy government buying for free ration schemes like PMGKAY.
And there's even more on the way—almost 20 million tons still need to be processed by millers.
Storage and subsidy bills are climbing
All this extra rice is starting to pile up costs. With over 53 million tons procured this season and about 41 million tons handed out through welfare programs each year, storage and subsidy bills are climbing—expected to hit ₹2 lakh crore in FY25.
The next big harvest starts October, which means even more space (and money) will be needed.
Free rations are set to continue for over 800 million people
To keep things under control, the government is diverting some surplus for ethanol production and selling a portion on the open market—but moving these huge stocks isn't easy or quick.
Meanwhile, free rations are set to continue for over 800 million people until at least 2028, with total costs projected at ₹11.8 trillion.