Telangana raises paddy procurement demands before Centre

Hyderabad: N. Uttam Kumar Reddy on Thursday raised key concerns over Telangana paddy procurement and urged the Union government to revise policy and targets.

In a letter to Prahlad Joshi, he highlighted the gap between rising production and reduced central procurement allocations. As a result, surplus stocks have increased and financial pressure on the state has grown.

He requested the Centre to reallocate 5 lakh metric tonnes of boiled rice for the Rabi 2024–25 season. At present, 8.45 LMT of rice remains pending for delivery. Since the earlier deadline has passed, the state has sought a 60-day extension to complete supplies.

Telangana paddy procurement concerns flagged to Centre

The minister said the state produces high-quality paddy with lower moisture content. Therefore, it suits parboiled rice production. He added that millers have agreed to supply rice with only 5% broken grains, which offers a practical solution.

In addition, he requested a 20 LMT increase in the boiled rice target for the 2025–26 Kharif Marketing Season. This revision would better match the state’s growing output.

He also stressed the need for extra time to complete Rabi deliveries. According to him, delays in stock verification and milling require at least two more months.

Rising production adds pressure on system

The minister noted a sharp rise in paddy production after December 2023. He attributed this growth to improved irrigation and farmer-focused policies.

Under the decentralised system, Telangana procures paddy on behalf of the Centre to ensure Minimum Support Price for farmers. However, reduced targets for Custom Milled Rice and boiled rice have created operational challenges.

Consequently, the state now faces higher storage costs, milling expenses and interest burdens. Data shows that the share of boiled rice supplied to the Food Corporation of India has declined in recent years.

Call for policy support to protect farmers

The minister said continued Telangana paddy procurement is essential to prevent distress sales by farmers. At the same time, he warned that the state cannot sustain rising financial stress without timely support.

He urged the Centre to revise targets, extend deadlines and align procurement policy with actual production levels. Such steps, he said, would stabilise the system and support farmers effectively.