India's rice stocks hit record, wheat at four-year high

India's rice stocks in government warehouses climbed over 14% from a year earlier to a record high for early September, while wheat inventories reached a four-year peak on stronger buying from farmers, official data showed on Wednesday.

Record rice stocks will support higher exports by the world's biggest supplier, while improved wheat inventories give the government room to curb potential price spikes later this year through open market sales.

State reserves of rice, including unmilled paddy, totalled a record 48.2 million metric tons as of September 1, far exceeding the government's target of 13.5 million tons for July 1.

Wheat stocks stood at 33.3 million tons on September 1, well above the government's target of 27.6 million tons, the data showed.

"Rice exports are rising. India is set to export a record quantity this year, but stocks remain high due to last year's record crop," said a New Delhi-based dealer at a global trading firm.

India, which accounts for around 40% of global rice exports, removed the last of its export curbs on the grain in March 2025.

The Rice Exporters Association expects shipments from India to rise by nearly 25% from a year earlier to a record 22.5 million tons this year.

The new season's paddy crop will start arriving next month, which could create storage challenges for government agencies, the dealer said.

Over the past three years, low wheat stocks were a concern for the government, but with ample supplies now, it can release grain into the open market to keep prices in check during the festival season, said a Mumbai-based trader.

Indians will celebrate Dussehra and Diwali festivals in October, when demand for wheat typically rises.