Maybe your conclusion applies to fruits or vegetables, of which there indeed considerable storage loss (promarily due to the cold temperatures needed iirc). But I don't think it applies to rice.
[0]: https://www.statista.com/statistics/1147671/india-post-harve...
This only accounts for the loss after the grain is procured and not the loss between harvest and procurement. Given the practical challenges of measuring this, I doubt there's any quality data. I can only speak anecdotally but news reports about losses from poor makeshift storage arrangements while waiting for procurement are frustratingly common.
But in India procurement, storage and sale of agricultural produce are all wrapped up in a maze of Byzantine laws. As a result, availability of financing and infrastructure is abysmal. The first modern rice silos in the country are only expected to start operations in the next month or so.
The scrapped farm laws were ill-considered and I'll framed. Fun fact: Both, the Produce Trade and Commerce Act and the Agreement on Price Assurance Act expressly barred the jurisdiction of courts in entertaining disputes relating to farming disputes and instead gave authority to the local Collector to arbitrate. That's blatant and shameless executive overreach. And that's not even going into the fact that these Union laws intrude on what is explicitly a State subject.
It reminds me a bit of the game Oxygen Not Included where early food storage techniques involve keeping it stored in an area saturated with CO2 to reduce the rate at which it rots before you have access to refrigeration.
Technically food in a cold enough freezer will never get uneatable. It is indeed flash frozen to preserve its texture. The issue is that quality tends to get down with time due to water sublimation.
More practically, while sublimation hurts "quality", it does not harm the nutritional value of the food, so does not seem like that big of a deal in the context of famine policy.
For rice it is even less of an issue, because rice is routinly stored dry and rehydrated when cooked.