Rice traders, retailers and millers must declare stocks every Friday as prices climb

The Centre on Friday ordered every trader, wholesaler, retailer, big retail chain and miller in the country to declare their rice and paddy stocks every week, its sharpest step yet against a rise in rice prices that has hit the southern states hardest.

Under the food ministry’s order of November 6, 2026, stocks must be reported on the government’s Food Stock Portal in six categories: Basmati rice, non-Basmati premium rice, non-Basmati rice, parboiled rice, broken rice and paddy. “All entities stocking these commodities must register and update their stock positions every Friday,” the ministry said. The rule applies in all states and Union Territories.

Units that do not register, or that break stock limits, face action under Sections 6 and 7 of the Essential Commodities Act, 1955.

Southern states get power to cap stocks

In a separate letter on the same day, the Centre agreed to let Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana issue control orders limiting how much paddy and rice a trader can hold. The limits can stay in force until January 31, 2027. The size of the caps will be set by the states.

The south is where the squeeze is sharpest. Wholesale prices of Sona Masoori, the staple rice of much of the region, were reported to have climbed to ₹65 to ₹70 a kg from about ₹50 a month earlier.

How high prices have gone

Retail rice inflation rose to 8.25% in September, from 5.89% in August. The average retail price is about ₹48.23 a kg, roughly 12% higher than a year ago.

Deficient and uneven rain is the main cause, and premium non-Basmati varieties have been hit hardest. Kharif paddy was sown on about 42.68 million hectares this season, around 4% less than last year, and the trade expects output of about 147 million tonnes against last year’s record 154 million tonnes.

Experts say this is not a national shortage. Government rice stocks are comfortable, and the pressure is concentrated in a few regions and grades.

More rice into the market

The government is also pushing more grain out of its own stores. It has doubled the 2026-27 target for rice sales to private buyers through e-auctions under the Open Market Sale Scheme (Domestic), from 25 lakh tonnes to 50 lakh tonnes. About 25 lakh tonnes had already been sold by October 31, against 11 lakh tonnes by the same date last year.

Extra rice has also been given to NAFED, NCCF and Kendriya Bhandar to sell as Bharat Rice, with the southern states getting priority.

The weekly returns on the portal are meant to show the government who is holding how much rice, and where, while the five southern states decide how tight their caps should be.