Karimnagar: Demand for Fine-Variety Paddy Rises as Traders Offer Higher Prices

Karimnagar: Demand for fine-variety paddy has risen in the erstwhile Karimnagar district, with rice millers and traders approaching farmers to buy the Kharif crop in advance at prices above the government’s minimum support price (MSP).

The increase comes amid predictions of prolonged El Nino conditions and concerns among traders about possible foodgrain shortages in the coming months.

Although harvesting has not yet begun, traders and millers are offering higher prices to secure supplies directly from farmers.

The government is offering an MSP of `2,461 per quintal for fine-variety paddy sold at procurement centres, along with a state government bonus of `500.

This takes the total to `2,961 per quintal.

Traders are offering between `3,300 and `3,500, depending on the variety.

Prices could rise further as millers and traders from other parts of Telangana and neighbouring states approach farmers to procure the crop.

Some traders are reportedly offering as much as `5,000 per quintal for the Jai Sriram variety, whose rice is selling at `7,500 per quintal in the market.

Thatipally Indrasena Reddy, a farmer from Lingapur village in Shankarapatnam mandal, sold a portion of his standing paddy crop to a trader from Jammikunta for `3,200 per quintal.

The trader will collect the crop after harvesting, he said.

Speaking to Deccan Chronicle, Indrasena Reddy said he had sold part of his crop despite expectations of a further price increase.

He said farmers faced difficulties selling their produce at paddy procurement centres, including waiting for weeks and receiving lower prices over various stated reasons.

He opted to sell part of his crop to a private trader instead.