October 31, 2024: The Food Corporation of India (FCI) is poised to record its highest rice stock in two decades, with levels projected to reach approximately 300 lakh tonnes by November 1. This significant accumulation is attributed to increased procurement efforts by government agencies and recent policy changes aimed at controlling food inflation.

Current data reveals that the FCI's rice stock stands at 299 lakh tonnes, alongside an additional 13 lakh tonnes expected from millers. Under the government’s buffer norms, the FCI is required to maintain a minimum stock of 102.5 lakh tonnes to ensure food security and support various welfare programs.

Despite the impressive stock levels, officials acknowledge the challenges associated with liquidating such a substantial inventory. To address this, the government has permitted states to directly procure extra rice from the FCI for local schemes. Additionally, 23 lakh tonnes of rice have been allocated for sale to ethanol distilleries as part of a broader effort to manage the surplus.

The rice stock surge follows a series of measures implemented by the central government, including a halt on rice sales to states from the central pool last year and restrictions on non-basmati white rice exports. These actions were taken in response to concerns over food inflation exacerbated by deficient rainfall.