India doubles rice sale target as price concerns loom

India has doubled its target for rice sales to private traders under its open market scheme to 5 million metric tonnes for the 2026/27 financial year to bring down prices that are rising on concerns over production, the government said on Friday.

India's rice production is set to fall this year for the first time in a decade, and by the most in nearly 20 years, as below-normal rainfall during the crop's maturation period threatens to cut yields, industry officials told Reuters.

New Delhi has allowed the southern states of Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana to impose stock limits on rice and paddy until January 31, 2027, to ensure adequate supplies, curb hoarding and keep prices in check, the government said in the statement.

The government has already sold 2.5 million metric tonnes of rice to private buyers under the scheme this year, compared with 1.1 million metric tons during the corresponding period last financial year.

The government aims to ensure adequate rice supplies in the market and curb hoarding and black marketing.

India, the world's largest rice-producing and exporting country, has received rainfall nearly 13 percent below normal so far during this year's monsoon.