Unlike wheat, India is a major exporter of rice. In 2021-22, the country exported nearly 22 million-tonne of rice, about a sixth of its total output. India accounts for 40% of the world’s rice shipments.
The government procures, or purchases, cereals at minimum support prices, which are then distributed to nearly 800 million beneficiaries through the public distribution system (PDS) under the National Food Security Act.
According to the food ministry’s calculations, the government will require 18.5 million-tonne of cereals for distribution under PDS and other welfare schemes, leaving it with a surplus of nearly 8.6 million-tonne.
Official figures released on May 26 showed the government procured 52.06 million-tonne of rice during the kharif marketing season (2022-23) at minimum support prices, resulting in a payout of ₹1.6 lakh crore to over 10 million farmers.