India Raises Reserve Prices For Wheat And Rice
The Government of India has increased the reserve prices of wheat and rice from its strategic foodgrain reserves for the fiscal year 2025-26. This move aims to manage supply, support farmers, and control inflation. The Food Corporation of India (FCI) will sell these grains through e-auctions under the Open Market Sale Scheme-Domestic (OMSS-D). The revised prices reflect recent production trends and government policies.
Reserve Price Increase Details
The Department of Food and Public Distribution (DFPD) fixed the new reserve price for wheat at Rs 2,550 per quintal. This is an 11 per cent rise from Rs 2,300 in the previous fiscal. The price applies to all wheat crop years including the current Rabi Marketing Season 2025-26 and is valid until June 30, 2026. For rice, the reserve price varies by buyer. From November 1, the price for rice with 25 per cent broken grains sold to private parties and cooperatives will be Rs 2,890 per quintal, a 3.2 per cent increase from Rs 2,800. Rice prices for state governments and ethanol distilleries will rise to Rs 2,320 per quintal from Rs 2,250. Custom milled rice with 10 per cent broken grains will be sold at Rs 3,090 per quintal, up from Rs 3,000. Coarse grains such as bajra, ragi, jowar, and maize also saw price hikes, with ragi reaching Rs 4,886 per quintal.
Reasons Behind Price Adjustments
The rice reserve price hike aligns with the 3 per cent increase in the minimum support price (MSP) for paddy. The MSP for common paddy is now Rs 2,369 per quintal and Rs 2,389 for Grade A paddy. Wheat’s reserve price increase exceeds its MSP rise. The MSP for wheat was raised by 6.6 per cent to Rs 2,425 per quintal for RMS 2025-26. The government’s decision reflects a bumper wheat crop and better procurement rates.
Production and Stock Situation
India recorded a wheat production of 117 million tonnes in 2024-25, a record high. Wheat procurement by the government reached 30 million tonnes by early July 2025, surpassing last year’s 26.5 million tonnes. Rice stocks are also at record levels with 37.9 million tonnes in the central pool as of June 1, 2025. Wheat stocks stood at 36.9 million tonnes, the highest in four years. Additional stocks include 32.2 million tonnes of unmilled paddy and 0.45 million tonnes of coarse grains. Good monsoon forecasts and increased sowing for the kharif season provide scope for releasing these grains into the market to stabilise prices.
Role of Food Corporation of India
The FCI manages procurement, storage, and distribution of foodgrains under the Public Distribution System (PDS). It uses the OMSS-D scheme to sell grains in the open market through e-auctions. This mechanism helps ensure foodgrain availability, controls inflation, and supports farmers by maintaining minimum price levels.
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