Wheat stocks with the Food Corporation of India (FCI) declined by over 3% month-on-month as of August 1, standing at 34.7 million tonnes, but still remained well above the buffer requirement and marked a four-year high for the month. This is the second straight monthly decline, a typical trend post the procurement season, which ends in June. According to FCI data, wheat stocks in the central pool were 3.3% lower than July's 35.9 million tonnes but up 29.5% year-on-year from 26.8 million tonnes in August 2024. The current wheat stock level remains comfortably above the buffer norm of 27.58 million tonnes, which includes 24.58 million tonnes of operational stock and 3.00 million tonnes of strategic reserve. The year-on-year increase in wheat stocks is attributed to higher production and stronger procurement during the recently concluded rabi marketing season (April–June 2025), during which the government procured 30.1 million tonnes, up from 26.6 million tonnes last year. The FCI typically sells surplus grain in the open market to control prices. However, for the 2025-26 marketing season (April–March), the government has not yet initiated open market sales of wheat or rice, citing adequate supply and price stability. On July 24, Food Secretary Sanjeev Chopra confirmed that there is no immediate need for open market intervention due to stable market conditions and healthy procurement. Rice Stocks Hit Two-Decade High Rice stocks in the central pool stood at 38.0 million tonnes as of August 1, nearly 0.5% higher than the previous month and 16% higher than a year ago (32.8 million tonnes). This is the highest rice stock level seen in August in the past 20 years and significantly above the buffer norm of 13.54 million tonnes (including 11.54 million tonnes of operational stock and 2.00 million tonnes of strategic reserve). Experts attribute the large stockpile to government policies that incentivize paddy cultivation, such as higher minimum support prices (MSPs) and additional state-level bonuses. The government also follows an open-ended procurement policy for rice. New Procurement Quality Norms for Kharif Season Looking ahead to the 2025-26 kharif marketing season (October–September), the government plans to lower the permissible broken rice content in its procurement to 10%, down from the current 25%, beginning October. This initiative aims to enhance rice quality in the central pool. “The rice FCI currently procures has up to 25% broken grains. From October, we are experimenting with reducing this to 10%,” Chopra announced at a recent industry event. The excess broken rice (around 15%) will be auctioned at the mill level and may be used by ethanol and animal feed industries. FCI procures paddy from farmers, and mills supply the custom-milled rice as per FCI's specifications. Total Foodgrain Stocks Surge Total foodgrain stocks with the FCI (including wheat and rice) as of August 1 stood at 72.6 million tonnes, a 22% increase from 59.6 million tonnes a year earlier. However, this was slightly lower than the 73.7 million tonnes recorded on July 1. In Summary: Wheat stocks down 3.3% MoM at 34.7 mln tonnes; up 29.5% YoY Rice stocks at 38.0 mln tonnes, highest in two decades for August Total FCI foodgrain stock at 72.6 mln tonnes, up 22% YoY No open market sales yet for 2025–26 due to stable prices Government to reduce broken rice content in procurement from October