The government may have to hike food subsidy allocation by Rs 25,000 crore in the next fiscal year from the budget estimate of Rs 2.27 lakh crore, if the Food Corporation of India (FCI) continues to hold surplus grains stock far exceeding the buffer, officials said. The FCI’s economic cost (including MSP, storage and carrying cost) for rice and wheat for 2026-27 is estimated to increase to Rs 4391/quintal and Rs 3145/kg, respectively, up from Rs 4211/quintal and Rs 2968/quintal in 2025-26.