A pilot project based on this plan was conducted during the 2021-2022 Kharif crop year.
AI-powered analyzers use digital imaging and machine learning to assess moisture content, impurities, grain fractions and overall grain quality in wheat, rice and other grains. By replacing manual inspection with real-time objective testing, the move aims to reduce wastage, ease traffic congestion and disputes at mandis and improve the quality of grain entering government stocks.
This is an increasingly critical task as purchases increase and buffer stocks grow, amplifying the economic impact of even small improvements in quality assessment and inventory management, the people cited above said.
The government’s wheat purchases during the 2025-26 rabi marketing season reached 30 million tonnes, the highest since 2021-22, while purchases of kharif paddy in the ongoing procurement reached 41.75 million tonnes as on 20 December. In the marketing season last year, the purchase of rice was 76.80 million tonnes, while wheat was 26.6 million tonnes.
The deployment of AI tools is also expected to enhance delivery under social welfare schemes such as the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and the National Food Security Act (NFSA), under which subsidized food grains are supplied to around 80 million beneficiaries.
“Such large inflows put significant pressure on procurement operations, warehousing infrastructure and quality control mechanisms,” said one of the two people involved in the aforementioned process. “Automated testing could also improve storage outcomes. Real-time quality data captured at collection points would allow agencies such as the Food Corporation of India (FCI) to more efficiently segregate grain lots, reduce moisture spoilage during storage and optimize movement between warehouses.”
“AI-based quality checks would give agencies better visibility into the quality and availability of food grains allocated for the public distribution system, which would help ensure consistency and reduce complaints at the recipient level,” said the second person quoted above.
The move assumes significance as India is now a key supplier of food to the world. According to a report released on November 7 by the World Trade Organization (WTO), India’s policy change contributed to a 29% drop in world rice prices in 2025 and helped cool food inflation, especially in African and Asian countries such as Senegal, Benin and Bangladesh, which are heavily dependent on Indian rice.
On November 11, Mint reported India’s lifting of restrictions on rice exports, offering a timely reprieve to global markets hit by a sharp rise in food prices by easing pressure on supplies and restoring confidence in the commodity trade.
Experts say technological reforms in public procurement are increasingly important as India’s role in global food markets expands. “As India becomes the world’s largest exporter of rice, improving grain quality assessment and storage efficiency becomes critical not only for domestic food security but also for maintaining India’s credibility as a reliable supplier,” said Binod Anand, High Level Member of the Minimum Support Price (MSP) Committee.
“Automated testing can help reduce waste, improve inventory management and ensure that export growth does not come at the expense of quality or availability for welfare systems,” added Anand.
According to AI experts, automated testing can help in transparent evaluation of grain. “Automated grain analyzers can revolutionize grain quality assessment by enabling faster, more accurate and transparent assessments. This technology eliminates subjectivity, ensuring fair prices for farmers, consistent quality standards for buying agencies and safe, high-quality food for consumers,” said Dr Preet Sandhu, founder and CEO of AI-powered drone design and manufacturing company AVPL International.
Email queries on the development sent to the Department of Consumer Affairs on December 19 remained unanswered till press time.
Industry bodies said the use of the technology could solve long-standing operational bottlenecks in the system. “Automated grain analyzers can bring transparency, speed and uniformity in purchasing while ensuring better quality grain reaches consumers,” said Tarsem Saini, president of the All India Rice Millers Federation, which represents rice millers in India.
Automatic grain analyzers can also significantly help farmers by providing fast, accurate and transparent grain quality testing. It will also reduce manual bias, ensure fair pricing, better compliance with SMEs and speed up procurement. “With a single scan, AI scans thousands of kernels in seconds and labels moisture levels and fractional percentages with surgical precision. This technology-driven transparency ensures that annadata gets every paisa it deserves while our national buffer stocks remain top-notch,” said Amit Banka, founder and CEO of WeNaturalists, a digital solution for project management and collaboration facilitation.
India is likely to export a record 23.4 million tonnes of rice during 2025-26, up 2% from the previous season, according to a forecast by the International Grains Council (IGC). The increase is expected to be driven by strong demand from African countries and a recovery in supplies to Asia Pacific markets such as the Philippines and Malaysia.
The IGC said India is expected to account for more than one-third of global rice trade, expected to reach a record 59.9 million tonnes. India exported 19.86 million tonnes of rice in FY25, up from 16.35 million in FY24.
