Record Stock Levels Rice stocks with the Food Corporation of India (FCI) have reached a 10-year high of 36.3 million tonnes (MT), exceeding the buffer norm of 10.25 MT by more than 2.5 times. This sharp rise has triggered concerns over rising costs in the Public Distribution System (PDS), potentially inflating the government�s food subsidy bill. Procurement Cycle and Contributing Factors The surge in stocks coincides with the start of paddy procurement for the 2025�26 season (October�September). Officials attribute the increase to robust crop output and consistently high procurement under the Minimum Support Price (MSP) scheme. Each year, FCI and state agencies procure around 52�53 MT of rice, while approximately 36�38 MT is distributed through schemes like the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). Additionally, nearly 10 MT of rice is still pending delivery from millers. Rising Economic Costs Despite active offloading through open market sales, ethanol manufacturing, and welfare initiatives such as the Bharat Rice program, the surplus remains substantial. In FY 2025�26, more than 4.2 MT of rice has already been offloaded, nearing last year�s record of 4.63 MT. The economic cost of rice�including MSP, storage, transportation, and other overheads�was estimated at ₹41.73 per kilogram at the beginning of the fiscal year and may rise further due to excess inventory. Procurement Targets and State Contributions The rice procurement target for the 2025�26 kharif season is set at 46.35 MT, slightly below last year�s kharif procurement of 47.38 MT. Early procurement has already begun in Punjab and Haryana, ahead of the official start date of October 1. In the 2024�25 season, total rice procurement stood at 54.49 MT�47.38 MT during kharif and 7.1 MT during rabi. Major contributing states include Punjab, Haryana, Madhya Pradesh, Chhattisgarh, Odisha, Andhra Pradesh, and Telangana.