<h3 data-start="536" data-end="609">Rice Market Outlook 2026: India at the centre of a global surplus</h3>
India enters 2026 not merely as the world&rsquo;s largest rice producer and consumer, but as the single most influential force in global rice pricing. A combination of record domestic output, unprecedented government-held stocks and easing export restrictions has created a supply-heavy environment that will shape both Indian and international rice markets through the next year.
Taking an aerial view first, global rice production in 2025&ndash;26 is at a historic peak, crossing 540 million tonnes (milled basis). While global consumption is also at a record high, the rate of supply growth has outpaced demand, resulting in exceptionally comfortable ending stocks. This surplus is not evenly distributed: India alone accounts for a dominant share of incremental stocks, making it the de facto price anchor for the world market.
<h3 data-start="1461" data-end="1515">Major producers: why India dominates the cycle</h3>
Among the top rice-producing nations, India, China, Bangladesh, Thailand and Vietnam form the core supply base. However, the balance of power is skewed.
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India is projected to harvest 151&ndash;152 million tonnes (milled) in 2025&ndash;26, supported by stable acreage, favourable monsoons and higher yields.
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China&rsquo;s output remains large but largely inward-focused, limiting its role in export pricing.
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Bangladesh continues to post strong harvests, adding to regional surplus.
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Thailand and Vietnam, while key exporters, face higher cost structures and tighter supplies, reducing their pricing flexibility.
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This structure allows India to undercut competitors in non-Basmati segments, especially when government-held stocks are released or exports are actively encouraged.
<h3 data-start="2327" data-end="2367">Global trade and price direction</h3>
With global rice trade expected to expand modestly in 2026, India&rsquo;s export ambition &mdash; ranging between 25 and 30 million tonnes &mdash; will be decisive. The abundance of Indian rice has already kept international prices under pressure, and unless disrupted by weather or policy shocks, price softness is likely to persist through 2026.
Importing regions in Africa and Southeast Asia benefit from this environment, while competing exporters face sustained margin pressure. India&rsquo;s ability to adjust export flows swiftly makes it the swing supplier of the global market.
<h3 data-start="2958" data-end="3016">Returning to India: procurement, stocks and policy</h3>
Domestically, the rice story is defined by policy-driven accumulation. For the Kharif Marketing Season 2025&ndash;26, the Minimum Support Price (MSP) for paddy stands at ₹2,369 per quintal (common) and ₹2,389 per quintal (Grade A). With the cost of production well below MSP, procurement remains attractive for farmers.
As a result, government rice stocks are estimated at 36&ndash;38 million tonnes, far exceeding buffer norms and sufficient to meet Public Distribution System (PDS) requirements for several years. Additional procurement in the current season is likely to add further pressure to storage and inventory management.
<h3 data-start="3676" data-end="3719">Millers, OMSS and market psychology</h3>
For millers, availability of paddy is not a concern; price visibility is. The Open Market Sale Scheme (OMSS) has become a critical signal.
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Expectations of lower OMSS prices delay private buying.
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Clarity on OMSS terms immediately revives demand.
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This stop-start buying behaviour keeps wholesale rice prices capped, particularly in the non-Basmati segment, despite steady offtake from PDS and institutional buyers.
<h3 data-start="4164" data-end="4231">Retail rice price forecast: what consumers will pay in 2026</h3>
Based on current wholesale levels, surplus stocks, policy stance and supply-chain costs, the following retail price outlook for 2026 emerges:
<h4 data-start="4384" data-end="4425">Common retail rice (non-Basmati)</h4>
Forecast range: ₹3,800&ndash;₹4,500 per quintal (₹38&ndash;₹45 per kg)
This represents a mild decline or stagnation compared to mid-2025 levels. Abundant supply, regular OMSS releases and limited export pull will prevent any meaningful price rise. Logistics, packaging and retail margins will be the only upward pressures.
<h4 data-start="4753" data-end="4814">Premium retail rice (Basmati and aromatic varieties)</h4>
Forecast range: ₹9,000&ndash;₹12,000 per quintal (₹90&ndash;₹120 per kg)
Premium varieties such as Basmati, Joha, Dubraj and Bamboo rice will remain structurally insulated. While some softening is possible due to global surplus, export demand, ageing value and branding will keep prices firm compared to common rice.
<h3 data-start="5144" data-end="5188">Supply chain and retail implications</h3>
For retailers, 2026 is likely to be a volume-driven year rather than margin-led. Stable procurement costs allow competitive pricing, benefiting consumers. For millers, non-Basmati margins will stay under pressure, pushing consolidation and efficiency gains.
<h3 data-start="5457" data-end="5475">Bottomline</h3>
India&rsquo;s rice market has moved decisively from scarcity to surplus. With record production, overflowing stocks and strong policy control, India will continue to anchor global rice prices through 2026. For consumers, this means affordable staples; for exporters and farmers, it signals a phase of tight margins and policy dependence. The challenge ahead is no longer production &mdash; it is managing abundance.

Record output, bulging stocks and soft exports keep world rice prices under pressure.

Rice Glut 2026: India Sets the Global Price

Record output, bulging stocks and soft exports keep world rice prices under pressure.

December 15, 2025 | 13:17 IST