Telangana rice procurement target revision sought from Centre

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By HNH Web Desk
Telangana rice procurement target hike sought

Hyderabad: Telangana rice procurement took centre stage in New Delhi after the State government sought a substantial increase in its Rabi 2025-26 rice procurement target. The State urged the Centre to raise the target from 35 lakh metric tonnes (LMT) to 54.50 LMT of rice, equivalent to 80.09 LMT of paddy already procured.

Irrigation and Civil Supplies Minister N. Uttam Kumar Reddy and Agriculture Minister Thummala Nageswara Rao led a delegation that met Union Minister for Consumer Affairs, Food and Public Distribution Pralhad Joshi. During the meeting, the ministers pressed for approval of several procurement-related demands.

The State also requested permission to deliver the entire quantity in the form of boiled rice. According to the delegation, most Rabi paddy grown in Telangana is suitable for parboiled rice milling.

Meanwhile, Telangana recorded the highest paddy procurement in its history. Procurement during Rabi 2025-26 reached 80.09 LMT and may increase further as arrivals continue from late-harvesting districts. Combined procurement during Kharif and Rabi of KMS 2025-26 touched a record 152 LMT. This marked the highest procurement ever recorded in Telangana and the erstwhile united Andhra Pradesh.

The ministers informed the Centre that Telangana had initially projected around 90 LMT of paddy procurement during the Rabi season. However, the Centre fixed the rice procurement target at 35 LMT, equivalent to 51.47 LMT of paddy. As a result, the State procured nearly 29 LMT more paddy than the quantity covered under the approved target.

Further, the delegation stated that farmers should not suffer because of lower procurement allocations. Despite heatwave conditions, shortages of hamalies, storage constraints, transportation bottlenecks, overlapping maize arrivals and unseasonal rains, the State continued procurement at Minimum Support Price and under Fair Average Quality norms.

Telangana rice procurement creates Rs 16,446 crore burden

The ministers also sought additional time for Custom Milled Rice deliveries. They requested a 60-day extension for pending Rabi 2024-25 deliveries. In addition, they sought a 120-day extension for Kharif 2025-26 deliveries. The State said storage shortages and heavy arrivals had slowed the movement of rice to the Central Pool.

Another key demand related to future procurement targets. The delegation urged the Centre to align future targets with production and procurement estimates submitted by the State government. According to the ministers, unrealistic targets complicate procurement operations and create avoidable hardships for farmers.

The delegation also highlighted the financial burden arising from procurement beyond Centre-approved targets. Official figures showed that Telangana procured 69.50 LMT of paddy above approved quantities during the last three major procurement seasons. Consequently, the State incurred an additional MSP-related burden of nearly Rs 16,446 crore.

The largest burden arose during Rabi 2025-26. Telangana procured 80.09 LMT of paddy against the Centre’s target equivalent of 51.47 LMT. Consequently, surplus procurement reached 28.62 LMT and generated an additional liability of about Rs 6,837 crore.

Similarly, the State incurred an additional burden of Rs 5,278 crore during Rabi 2024-25. It also spent an additional Rs 4,331 crore during Kharif 2025-26 because procurement exceeded Centre-approved targets.

The ministers informed the Union government that expanded irrigation infrastructure, improved farming practices, assured power supply and sustained support measures had driven Telangana’s growth in paddy production. They urged the Centre to approve the enhanced procurement target, permit boiled rice deliveries and adopt procurement norms that reflect the State’s current agricultural output.

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