Hyderabad: Minister for Irrigation and Civil Supplies N. Uttam Kumar Reddy placed three demands before the Union government seeking changes to Telangana paddy procurement policy amid rising output and reduced central allocations.
In a letter addressed to Prahlad Joshi on Thursday, the minister flagged a mismatch between increasing production and declining procurement targets. He said the imbalance had led to surplus stocks and mounting financial pressure on the state.
He sought reallocation of 5 lakh metric tonnes (LMT) of boiled rice target for Rabi 2024–25 by reducing the Food Corporation of India’s raw rice quota. At present, 8.45 LMT of rice remained pending for delivery. The earlier deadline of February 28, 2026 had passed. Therefore, the state requested a 60-day extension to complete supplies.
The minister stated that Telangana’s paddy had lower moisture content and better grain quality, making it suitable for parboiled rice. He added that millers had agreed in principle to supply rice with only 5% broken grains. This, he said, offered a workable solution to adjust procurement composition.
Telangana paddy procurement issues flagged to Centre
Further, he requested an increase of 20 LMT in the boiled rice target for the 2025–26 Kharif Marketing Season. The proposed revision covered both Kharif and Rabi cycles. According to him, the increase would align procurement with the state’s expanding production levels.
He also reiterated the need for an additional two-month extension for Rabi 2024–25 deliveries. He said this was required due to pending physical verification of Kharif stocks and additional milling time.
The minister noted that Telangana had recorded a sharp rise in paddy production after December 2023. He attributed this to improved irrigation infrastructure and farmer-focused policies implemented by the current government.
Under the decentralised procurement system, the state procures paddy on behalf of the Centre to ensure Minimum Support Price for farmers. However, he said the Centre’s reduction in Custom Milled Rice and boiled rice targets had created operational stress.
As a result, the state faced increased storage costs, milling expenses, and interest liabilities. Data cited in the letter showed a steady decline in boiled rice supply to FCI. The share dropped to 66.78% in 2024–25 despite continued procurement.
He said sustained Telangana paddy procurement was necessary to protect farmers from distress sales. However, he added that the state could not continue bearing excess financial burden without revised allocations and deadline support from the Centre.