Higher opening stocks will help the federal government tame any price spikes later this year, even if the Food Corporation of India (FCI), the state stockpiler, struggles to meet its domestic wheat procurement target.

Wheat reserves in state granaries stood at 11.8 million metric tons on April 1, well above the government's target of 7.46 million tons, the data showed.

Wheat stocks are more than 4 million tons higher than at the same time last year.

"Even if they miss this year's wheat buying target like they did last year, they'll still have plenty to sell in the open market," said a New Delhi-based dealer at a global trading firm.

The FCI aims to buy 31 million tons of wheat from farmers in 2025. Last year, it targeted 30–32 million tons but managed to procure only 26.6 million tons.

Disappointing harvests in the past three years and lower purchases by the FCI pushed up prices of the staple grain and raised expectations that India may be forced to import wheat for the first time in seven years. The government has so far resisted calls for imports.

This year, the wheat procurement period is off to a strong start with FCI purchases well ahead of where they were during the same period in 2024.

State reserves of rice, including unmilled paddy, totalled a record 63.09 million tons as of April 1, far exceeding the government's target of 13.6 million tons.

The higher rice stocks would enable India to increase exports without compromising domestic supply, trade and industry officials said.

"The FCI is holding far more rice than needed. The government will now try to encourage exports to avoid buying more from the new season crop," said a leading exporter based in the eastern city of Kolkata.

India is the world's biggest exporter of rice and accounts for around 40% of global rice exports.