Uttam Urges Centre to Raise Paddy Procurement Targets Amid Telangana Output Surge
State seeks higher boiled rice allocation, deadline extension, and policy relief to prevent farmer distress and manage surplus stocks
Hyderabad: Telangana’s Minister for Irrigation and Civil Supplies, N. Uttam Kumar Reddy, has placed three urgent demands before the Union Government to address the widening gap between the state’s surging paddy production and the Centre’s declining procurement allocations.
In a formal letter to Union Food Minister Prahlad Joshi, the minister outlined the mounting challenges of managing excess stocks while safeguarding farmers from distress sales.
Key Demands to the Centre
Firstly, the state has requested the reallocation of 5 lakh metric tonnes (LMT) of the boiled rice target for Rabi 2024–25 by reducing the Food Corporation of India’s (FCI) raw rice quota. At present, 8.45 LMT of rice remains undelivered, and with the original deadline of February 28, 2026 already lapsed, Telangana has sought a 60-day extension.
The minister highlighted that Telangana’s paddy, known for its superior grain quality and low moisture content, is particularly suitable for parboiled rice production. Rice millers have agreed in principle to supply rice with only 5% broken grains, offering a viable and efficient solution.
Secondly, the state has sought a substantial increase of 20 LMT in the boiled rice procurement target for the 2025–26 Kharif Marketing Season (KMS), covering both Kharif and Rabi crops. This proposed enhancement aims to align procurement levels with Telangana’s rapidly expanding production capacity.
Thirdly, Uttam Kumar Reddy has requested an additional two-month extension for Rabi 2024–25 deliveries. This is necessitated by pending physical verification of Kharif stocks and the additional time required for processing.
Since the current Congress government assumed office in December 2023, Telangana has witnessed a sharp rise in paddy production across both cropping seasons, driven by improved irrigation infrastructure and farmer-focused policies.
Under the Decentralised Procurement Scheme, the state procures paddy on behalf of the Government of India to ensure farmers receive the Minimum Support Price (MSP) and are protected from distress sales.
However, the Centre’s policy of reducing Custom Milled Rice (CMR) and boiled rice targets has created significant challenges for the state, including surplus stock accumulation, rising storage and milling costs, and increased interest burdens.
Data shared in the letter indicates a steady decline in the proportion of boiled rice supplied to the FCI, falling to 66.78% in 2024–25 despite sustained procurement efforts.
The minister stressed that continued procurement support is crucial to protect lakhs of farmers, warning that the state cannot indefinitely absorb the financial strain of excess paddy without enhanced central assistance.
The letter concludes with an appeal to the Union Government to consider Telangana’s requests favourably in the interest of farmers and the agricultural economy.
