Centre doubles open-market rice sale target to 50 lakh tonnes for 2026-27 as prices climb

The Centre has doubled its target for selling rice in the open market. In the financial year 2026-27, 50 lakh tonnes of rice will now be sold, against the earlier target of 25 lakh tonnes. The government aims to increase the availability of rice in the market and give ordinary people relief from rising prices.

Inflation in the country continues to rise, and prices of everyday food items are going up. People were recently troubled by rising sugar prices, and rice prices are now climbing too. The Centre is trying to keep the prices of these essential items under control.

According to the Centre, 25 lakh tonnes of rice had been sold by October 31, 2026 under the open market rice sale scheme. In the same period last year, only 11 lakh tonnes was sold. The government is now preparing to sell another 25 lakh tonnes in the remaining five months of the financial year. The scheme is called the Open Market Sale Scheme, or OMSS. Under it, the government sells grain held in its warehouses in the open market to increase supply and bring down prices.

According to government data, retail rice prices rose in several states between August and November. In Delhi, the price was Rs 45 per kg on both August 9 and November 9. In Maharashtra it rose from Rs 50 per kg to Rs 53 per kg. In Tamil Nadu prices went from Rs 59 per kg to Rs 69 per kg, and in West Bengal from Rs 43 per kg to Rs 52 per kg. The increases in Tamil Nadu and West Bengal are particularly steep.

The rise in prices is attributed to this year's scanty and erratic rainfall, which has affected rice yields. According to industry officials, rice production in the five southern states of Karnataka, Andhra Pradesh, Telangana, Tamil Nadu and Kerala could fall by about 30 per cent. Production across the country is about 10 per cent lower than last year. Supplies of some varieties, such as Ponni and Sona Masoori, are falling sharply.

The government has ample rice stocks. As of October 1, 2026, the central pool held about 38 million tonnes of rice, against the minimum buffer norm of 10.25 million tonnes. From these stocks, the government can increase rice supply in the market and try to keep prices in check.