Government’s paddy procurement hit by weather woes, storage constraints

New Delhi: The government's paddy procurement from farmers has declined by more than a fifth from a year ago, hurt by erratic weather and the slow evacuation of purchased grain from some key paddy-producing regions due to storage constraints in the early phase of procurement, according to three people familiar with the development.

Between 1 and 28 October, government agencies, including the Food Corporation of India (FCI) and state agencies procuring on its behalf, bought 13 million tonnes of paddy, down from 16.9 million tonnes a year earlier, the people cited earlier said on condition of anonymity.

However, farmers and traders expect purchases to pick up in the coming days as weather becomes more favourable. The government has set a paddy procurement target of 71.95 mt for the 2026-27 Kharif Marketing Season (KMS), broadly unchanged from last year's target of 72 mt, despite a weaker monsoon this year and lower acreage.

According to data reviewed by Mint in the ongoing KMS 2026-27 season, Punjab emerged as the leading state in paddy procurement, with 8.86 million tonnes purchased as of October 28, followed by Haryana at 3.60 million tonnes and Tamil Nadu at 418,987 tonnes. Among the other contributing states, Uttarakhand recorded paddy procurement of 81,681 tonnes. According to the Central Food Grains Procurement Portal, procurement levels in all these leading states were higher during the last procurement season.

For KMS 2026-27, the government has fixed the minimum support price (MSP) for procuring common-grade paddy at ₹2,441 per quintal, up from ₹2,369 per quintal in the previous season. The MSP for Grade A paddy has been fixed at ₹2,461 per quintal.

Queries emailed to the department of food and public distribution and Food Corporation of India remained unanswered till press time.

Experts attributed the decline in procurement to bad weather and initial hiccups in lifting of the produce at the start of the procurement season.

"Procurement activities in Punjab were disrupted due to uneven rainfall, which increased moisture content in the crop and prompted farmers to delay harvesting. Also, initially, lifting of grains was an issue, which has been sorted out. However, the crop condition is good this year, and procurement is expected to gather pace in the coming days,”said Harchand Singh Barsat, chairman, Punjab State Agricultural Marketing Board.

The government plans to procure around 18 million tonnes of paddy from Punjab during the KMS 2026-27, making the state the largest contributor to the Centre's procurement programme, according to the state-wise estimates, reviewed by Mint. Chhattisgarh is expected to contribute around 10.9 million tonnes, followed by Odisha at 6.4 million tonnes, Uttar Pradesh at 6.2 million tonnes and Haryana at 5.8 million tonnes. Telangana with 5.7 million tonnes is also expected to be a significant contributor to the central procurement pool.

“The lower procurement levels can primarily be attributed to uneven and erratic weather conditions prevailing across the northwestern region, including Punjab. Unfavourable weather patterns have affected the harvesting and subsequent arrival of crops in mandis, thereby impacting overall procurement operations. The variations in weather conditions have created challenges for farmers as well as procurement agencies, resulting in a slower pace of procurement compared to expectations. The situation is expected to improve as market arrivals stabilise,” said Lal Chand Kataruchakk, minister of food, civil supplies and consumer affairs of Punjab.

The northwestern region, comprising Punjab, Haryana, Himachal Pradesh, Delhi, Uttarakhand, Uttar Pradesh and Rajasthan, received 6% above-normal rainfall during 1-21 October. Against the normal rainfall of 18.9 mm during the period, the region recorded 20 mm of actual precipitation, delaying the arrival of harvest.

Despite a 3.5% decline in paddy acreage, or a loss of 1.55 million hectares, amid rainfall deficits and El Niño concerns, the government has set a target to procure 71.95 million tonnes of paddy in 2026-27, signalling confidence in adequate rice supplies for domestic consumption and meeting the food security needs of the country. Rice is a key component of the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). To be sure, the government had procured 81 million tonnes of paddy against the target of 72 million tonnes last year.

“Despite some initial hiccups, procurement operations are now progressing smoothly. With a bumper crop expected this season, procurement is likely to gather further momentum in the coming days as harvesting and market arrivals pick up pace,” said Tarsem Singh Saini, president, Federation of All India Rice Millers' Association.

The country's foodgrain stocks remain substantially above prescribed buffer norms, providing a cushion for meeting food security requirements. As of 1 October 2026, rice stocks in the central pool stood at 37.76 million tonnes, against the prescribed buffer norm of 10.25 million tonnes.

About the Author

Vijay C. Roy is a journalist with over 21 years of experience covering various news beats across different organisations such as Business Standard and The Tribune. In the past, he has covered beats such as finance, auto, MSME, commodities, FMCG, pharmaceutical, agriculture, IT/ITES, infrastructure and start-ups. He joined Mint in February 2025, and covers agriculture, food processing, fertilizers, environment and climate change, bringing over two decades of experience reporting on farm policy, food inflation, crop trade, and rural livelihoods.<br><br>Vijay’s areas of reporting include food security and climate change policies, focusing on their impact on different stakeholders and their implications. His expertise lies in simplifying complex agri-economic issues such as edible oil import dependence, cotton and wheat trends, fertiliser subsidies, and climate-related risks. He has covered key developments including global supply disruptions and evolving trade policies, offering both macroeconomic perspective and field-level context. Known for his credible and balanced reporting, he follows a rigorous, fact-based approach that prioritises accuracy and context. He is driven by a commitment to public interest, aiming to make critical agricultural and economic issues accessible while contributing to informed policy and industry discussions.