India’s rice buy for buffer stocks up 4%, near 43 million tonnes
India’s rice procurement for the Central Pool rose 3.7% to 42.95 mt during Oct 2025–Jan 2026, strengthening buffers amid El Niño concerns. However, surplus stocks persist as no permanent disposal policy exists, while ad hoc ethanol diversion has disrupted sugarcane payments, reviving cane arrears for farmers.
India’s rice purchase for the Central Pool stock, done through the Food Corporation of India, during the October 2025-January 2026 period, was 42.95 million tonnes (mt), up by 3.7 per cent from 41.41 mt a year ago.
Experts believe the purchase in the first four months of the procurment season is good to face unforeseen eventuality amid concerns over likely emergence of El Nino during the monsoon season. Drought-bearing El Nino leads to drought or prolonged dry periods in India.
The government is yet to devise a permanent offtake policy to dispose of the surplus as the purchases have been exceeding the annual requirement for the public distribution system continuously. The ad hoc arrangement of diverting some quantity for ethanol has affected the sugarcane sector as lower ethanol purchase has led to reappearance of cane arrears for the farmers this year, experts said.
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Source : The Hindu Business line
