A pilot project based on this plan was undertaken during the kharif marketing year of 2021-22.
AI-enabled analyzers use digital imaging and machine learning to assess moisture content, impurities, broken grains and overall grain quality in wheat, rice and other cereals. By replacing manual inspection with objective and real-time testing, the move aims to reduce wastage, ease congestion and disputes at mandis, and improve the quality of grain that enters government stocks.
This is an increasingly critical task as procurement rises and buffer inventories grow, amplifying the economic impact of even small improvements in quality assessment and stock management, said the people cited above.
Government's wheat procurement during the 2025-26 rabi marketing season reached 30 million tonnes, the highest since 2021-22, while kharif paddy buys in the ongoing procurement touched 41.75 million tonnes as on 20 December. In the marketing seasons last year, paddy procurement was at 76.80 million tonnes, while wheat was at 26.6 million tonnes.
The deployment of the AI tools is also expected to strengthen delivery under 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 about 80 crore beneficiaries.
“Such large inflows place significant pressure on procurement operations, storage infrastructure and quality control mechanisms," said one of the two people involved in the process quoted above. “Automated testing could also improve storage outcomes. Real-time quality data captured at procurement points would allow agencies such as the Food Corporation of India (FCI) to segregate grain lots more efficiently, reduce moisture-related spoilage during storage, and optimize inter-depot movement."
“With AI-based quality checks, agencies would have better visibility on the quality and availability of grains allocated for the public distribution system, helping ensure consistency and reducing complaints at the beneficiary level," said the second person cited earlier.
The move assumes significance as India is now a key food supplier to the world. According to a report published on 7 November by the World Trade Organization (WTO), India’s policy shift contributed to a 29% fall in global rice prices in 2025 and helped cool food inflation, particularly in African and Asian countries such as Senegal, Benin and Bangladesh, which depend heavily on Indian rice.
On 11 November, Mint reported on India’s rollback of rice export restrictions offering a timely reprieve to the global markets hit by surging food costs by easing supply pressures and restoring confidence in the staple’s trade.
Experts say technology-led reforms in procurement are increasingly important as India’s role in global food markets expands. “As India emerges as the world’s largest rice exporter, improving grain quality assessment and storage efficiency becomes critical not just for domestic food security but also for maintaining India’s credibility as a reliable supplier," said Binod Anand, member of the high-level committee on minimum support price (MSP).
“Automated testing can help reduce wastage, improve stock management and ensure that export surges do not come at the cost of quality or availability for welfare schemes," Anand added.
According to AI experts, automated testing can help in transparent evaluation of the grain. "Automatic grain analysers can revolutionise grain quality assessment by enabling faster, more accurate, and transparent evaluations. This technology eliminates subjectivity, ensuring fair pricing for farmers, consistent quality standards for procurement agencies and safe, high-quality food for consumers," said Dr Preet Sandhu, founder and managing director, AVPL International, the company engaged into designing and manufacturing of AI-powered drones.
Email queries on the development sent to the ministry of consumer affairs on 19 December remained unanswered until press time.
Industry bodies said the use of technology could address long-standing operational bottlenecks in the system. “Automated grain analyzers can bring transparency, speed and uniformity to procurement, while ensuring better-quality grain reaches consumers," said Tarsem Saini, president of the Federation of All India Rice Millers Association that represents rice millers in India.
Automatic grain analyzers can also significantly help farmers as it will provide fast, accurate and transparent grain quality testing. It will also reduce manual bias, ensure fair pricing, better MSP compliance, and speed up procurement. "With a single scoop, the AI scans thousands of kernels in seconds, flagging moisture levels and broken percentages with surgical precision. This tech-driven transparency ensures that the annadatas gets every paisa they deserve, while our national buffer stock remains top-notch," said Amit Banka, founder and chief executive of WeNaturalists that offers digital solutions to manage projects and facilitate collaborations.
According to the International Grains Council (IGC) forecast, India is likely to export a record 23.4 million tonnes of rice during 2025-26, a 2% increase from the previous season. The rise is expected to be driven by strong demand from African nations and a rebound in shipments to Pacific Asian markets, such as the Philippines and Malaysia.
The IGC said India is expected to account for over one-third of the global rice trade that is projected 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.