India’s stash of rice is running at the highest for this time in at least two decades, raising the risk it will run out of room to store it all as another record crop looms. Overflowing reserves — equal to more than one-tenth of the annual global production — are becoming a headache for the world’s second-biggest grower as authorities struggle to create extra storage. Forecasts of above-average rains have raised expectations that the nation will reap another bumper crop this year, increasing the risk of the grain rotting in open storage facilities.
“Our outlook for Indian production is favorable, pointing to another record Indian crop being harvested in 2025-26,” said Shirley Mustafa, an economist at the United Nations’ Food and Agriculture Organization. The arrival of the new crop in September and October raises the prospect of increased supply pressure on public granaries, she said. India is the world’s top shipper, and its move to ease export restrictions has helped push Thai prices — an Asian benchmark — down almost 40 per cent from a 15-year high in January 2024. Still, the country’s swelling surplus shows its struggle to find enough demand to meet rising supply. Global stockpiles are expected to reach a five-year high in the coming season, which could keep prices under pressure.
