Odisha to auction 1 lakh tonnes of surplus rice amid record procurement

• State moves to liquidate excess stocks and ease storage pressure
• Open market sale aims to stabilise inventory before next procurement cycle

Odisha has moved to auction 100,000 tonnes of rice in the open market after a record procurement season led to excess inventories. During the Kharif Marketing Season (KMS) 2024-25, the state procured about 7.3 million tonnes of paddy, supplemented by about 1.9 million tonnes in the rabi season, resulting in an estimated 6.3 million tonnes of rice production, including fortified rice kernels.

Against a central procurement target of 5.8 million tonnes, the higher output created structural oversupply. While roughly 3 million tonnes have been allocated for domestic welfare schemes and 2.8 million tonnes earmarked for the central pool through the Food Corporation of India, the state was left with a surplus of 537,000 tonnes.

Subsequent internal consumption and targeted distribution reduced this to about 202,000 tonnes, highlighting persistent inventory pressure despite ongoing liquidation efforts.

Auction strategy to manage inventory and cash flow

To address this imbalance, the state cabinet has approved the auction of 100,000 tonnes through the open market, to be executed by the Odisha State Civil Supplies Corporation. The sale will follow the pricing framework and operational guidelines of the Food Corporation of India, aligning with broader Open Market Sale Scheme (OMSS) practices.

The move reflects a calibrated stock management strategy aimed at preventing storage constraints, reducing the risk of quality deterioration, and improving liquidity within the system. Officials indicated that any financial losses arising from the auction would be absorbed by the state, underscoring the priority placed on timely inventory clearance.

With the next procurement cycle approaching, the auction is expected to ease pressure on state granaries while maintaining supply discipline in the domestic market.