According to the Ministry of Farms, rice crop acreage in South Asian countries has increased by 58% from the previous year, which was supported by early onset of monsoons from the previous year on June 20th. Planting will be completed in most parts of the country by mid-August.
India has had a major impact on the global rice market, Mustafa said. “But we also have to see how the crops freight with competing suppliers and key rice buyers.”
The total inventory reached nearly 38 million tonnes this month, according to the Indian state-owned Food Corporation. It also holds over 32 million tonnes of unprocessed grain, equivalent to approximately 22 million tonnes of rice, data shows. The country maintains wheat and rice reserves from various welfare programs, including 5 kilograms of free grain per person per month for the poor.
Last month, the government allowed 2.8 million tonnes of rice from the state preparation for ethanol production, in addition to the previously approved 2.4 million tonnes. It is a very unusual move for important food staples, and larger crops can cause additional staircases.
Still, more than 140 million people remain excluded from the food distribution program as population data from a decade ago is continuously used to calculate beneficiaries. India is expected to spend around Rs 2 trillion ($23 billion) in the fiscal year ending March 31st to implement the world’s largest food program.
The federal government purchases grains such as rice and wheat from farmers at guaranteed prices and distributes grain to around 800 million people through a vast network of retailers. These guaranteed prices aim to protect farmers from distress sales in the open market.
