India’s government-held rice stocks climbed to a record level at the start of June, while wheat inventories rose to their highest level in five years, strengthening the country’s food security position and providing policymakers with greater flexibility to manage exports and domestic prices.

According to official data cited by Reuters, rice reserves, including unmilled paddy, stood at 68.43mn tonnes on June 1, up 15% from a year earlier and more than five times the government’s target of 13.5mn tonnes for July 1.

Wheat stocks reached 53.41mn tonnes, significantly above the official target of 27.6mn tonnes and the highest level recorded since 2021. The increase was driven by stronger government procurement from farmers following a robust harvest.

The sizeable rice inventories are expected to support continued exports by India, which accounts for around 40% of global rice shipments, despite concerns that El Niño-linked weather conditions could result in below-normal rainfall and affect future production.

Market participants said the large stockpile should give authorities confidence to maintain export flows while ensuring adequate domestic supplies.

The improvement in wheat inventories is also expected to help the government contain food inflation by enabling larger releases of grain into the open market if prices begin to rise later in the year.

India lifted its remaining restrictions on rice exports in March 2025, paving the way for stronger overseas shipments. While the country has often faced a mismatch between abundant rice supplies and tighter wheat availability in recent years, traders noted that inventories of both staple grains are now at comfortable levels.

The stronger stock position follows record harvests in the 2025-26 crop year. India produced 154.02mn tonnes of rice and 120.66mn tonnes of wheat, the highest levels on record, aided by favourable monsoon rains that encouraged farmers to expand cultivation areas.

The abundant grain reserves are expected to bolster India’s ability to manage domestic food supplies, support exports and moderate price volatility in the months ahead.