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Rice Prices Under Watch as Centre Tightens Stock Disclosure Rules Across India

 

New Delhi: The Centre on Friday tightened monitoring of rice and paddy stocks across the country and authorised five southern states, including Telangana, to impose stock limits wherever necessary, as the government stepped up measures to maintain market availability and contain price pressures. The new directions require traders, wholesalers, retailers, large retail chains, processors and millers to disclose their holdings every Friday through a central government portal.

Under an order issued by the Department of Food and Public Distribution on November 6, all entities stocking rice and paddy must register and report their holdings on the Food Stock Portal. The disclosure requirement covers six categories: basmati rice, non-basmati premium rice, non-basmati rice, parboiled rice, broken rice and paddy.

The Centre has also conveyed its concurrence to Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana to impose stock limits through appropriate control orders wherever state governments consider them necessary. These limits may remain in force until January 31, 2027. The announcement does not mean that identical limits have already been imposed in all five states; their implementation will depend on the respective state orders.

Entities failing to register or violating prescribed stock limits will be liable for action under Sections 6 and 7 of the Essential Commodities Act, 1955. The weekly reporting requirement is intended to give authorities a clearer picture of stocks held across different stages of the supply chain and help identify possible instances of hoarding.

The government has also increased the quantity of rice offered through the Open Market Sale Scheme (Domestic) for 2026-27. The target has been doubled from 25 lakh metric tonnes to 50 lakh metric tonnes. According to the ministry, 25 lakh tonnes had already been sold to private buyers through e-auctions up to October 31, compared with 11 lakh tonnes during the corresponding period of the previous financial year.

In another measure, additional quantities of Bharat Rice will be allocated to NAFED, NCCF and Kendriya Bhandar to widen its availability, particularly in southern states. The agencies have been asked to explore additional distribution channels to improve consumer access.

For households, the effectiveness of these measures will ultimately depend on whether additional supplies reach retail markets and whether stock monitoring helps moderate prices. Weekly declarations can improve visibility over inventories, but the impact on retail prices will also depend on procurement, distribution, regional availability and the movement of grain through the supply chain.

The intervention places particular attention on southern India, where the Centre has given states the option to regulate holdings in response to local market conditions. The coming weeks will show how state governments use these powers and whether the expanded supply measures translate into improved availability for consumers.

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