India: Govt sets lower paddy procurement target for 2026-27 Kharif marketing season

  • Government to tighten rice quality specifications from Kharif Marketing Season 2026-27
  • Decline in paddy acreage drives conservative procurement target

The Centre has set the paddy procurement target at 70.864 mnt for Kharif Marketing Season (KMS) 2026-27, beginning 1 October, below the procurement levels recorded in each of the previous three seasons. The target is slightly below the 72.074 mnt of paddy already procured during the current season as of 5 August. It is also lower than full-season procurement of 70.885 mnt in 2024-25 and 68.956 mnt in 2023-24.

Lower acreage drives conservative target

The lower procurement target comes amid a decline in paddy acreage. Paddy-sown area stood at 41.41 mnt as of 31 August, compared with 42.846 mnt  a year earlier. This reduction in planted area has contributed to a more conservative procurement estimate for the upcoming season. However, the final procurement could still differ from the target depending on crop yields, market arrivals, state procurement operations and the share of paddy sold through government agencies. Kharif paddy production for 2025-26 is estimated at 123.92 mnt in the second advance estimate.

Rice quality norms to become stricter

Alongside the procurement target, the government has approved tighter specifications for rice supplied under Pradhan Mantri Garib Kalyan Anna Yojana and other welfare schemes. From Kharif Marketing Season 2026-27, the permissible broken-grain limit for raw rice will be reduced to 10% from 25%, while the limit for parboiled rice will fall to 5% from 16%. The new specifications will be implemented in phases, with states asked to assess milling capacity and prepare upgrade plans.

Storage and procurement infrastructure in focus

The government is also pushing to expand storage infrastructure, with a plan to add 13.1 mnt of storage capacity, including 11.1 mnt through states and 2 mnt through the Food Corporation of India. Technology adoption is also being expanded, including GPS-based tracking of food grain movement and procurement optimisation tools.

Outlook

The lower procurement target signals a more cautious government buying outlook for Kharif Marketing Season 2026-27, largely reflecting reduced paddy acreage. However, strong government procurement in recent seasons and the possibility of higher market arrivals could keep actual procurement above the initial target if yields and farmer participation remain favourable.


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