A Glut of Crops After Diwali: Farmers Face Price Pressure Amid Surplus Stocks

A glut situation has emerged in the post-Diwali period, with foodgrain stocks reaching exceptionally high levels.

- Tirthankar Mitra

On October 1, wheat stocks in government godowns stood at 320.3 lakh tonnes — the highest in four years — exceeding the minimum buffer requirement by more than 1.2 times.

Rice stocks, too, have reached an unprecedented level. Government agencies are holding quantities about 4.4 times higher than what is required to meet the needs of the Public Distribution System (PDS) and the strategic reserve for emergencies.

The glut is expected to intensify as the harvesting and marketing of the new crop, which began in October, gather pace after Diwali. Farmers have planted a record 44.2 million hectares under rice this kharif season.