Why Is Telangana Raising Alarm Over Paddy Procurement?

These days, Paddy Procurement and surplus rice stocks have become a cause of concern for Telangana. On Thursday, April 9, Civil Supplies Minister N. Uttam Kumar Reddy raised major concerns over paddy procurement and appealed to the central government to revise policy and targets. In light of this, he wrote a letter to the Union Minister of Consumer Affairs, Food, and Public Distribution of India, Pralhad Joshi, explaining the major cause of concern.

In a letter written to Pralhad Joshi, he highlighted the gap between rising production and reduced central procurement allocations. Consequently, surplus stocks have increased and financial pressure on Telangana.

Currently, the state has 8.45 lakh metric tonnes of rice has yet to be delivered. As the earlier deadline has passed, the Telangana government has sought a 60-day extension to complete supplies. Minister Reddy has requested the Centre to reallocate 5 lakh metric tonnes of boiled rice for the Rabi marketing season.

Paddy Procurement concerns before the Centre

In the letter, the minister mentioned that the state produces high-quality paddy with lower moisture content, which is suitable for Parboiled rice production. Moreover, he added that millers have agreed to supply rice with only 5 % broken grains, which offers a practical solution. Not only this, but he also requested a 20 lakh metric tonnes increase in the boiled rice target for the 2025-26 Kharif Marketing season. According to him, this revision would better match the state’s growing output. Additionally, He also emphasized the need for extra time to complete Rabi deliveries. As per minister, delays in stock verification and milling require at least two more months.

Increasing production levels, adds pressure on system

Minister Reddy noted a sharp increase in paddy production after December 2023. The reason behind this significant growth is improved irrigation and farmer-focused policies. The Telangana government procures paddy on behalf of the Centre to ensure the Minimum Support Price (MSP) for farmers under the decentralised system. 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. The data projected that the share of boiled rice supplied to the Food Corporation of India has declined in recent years.

Policy support to safeguard farmers

Policy support to safeguard farmers is becoming increasingly crucial as financial pressures continue to mount. Lastly, the minister stated that continued Telangana paddy procurement is essential to prevent distress sales by farmers. Meanwhile, he warned that the state cannot maintain rising financial stress without timely support.

He appealed to 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.