Excess paddy, rice stocks haunt TG govt

The Telangana government is worried over excess paddy and rice stocks in the wake of increasing production! Taking serious note of it, State Civil Supplies Minister N Uttam Kumar Reddy requested Union Food Minister Pralhad Joshi to increase procurement targets of boiled rice targets by 5 LMT for Rabi 2024-25 by reducing the Food Corporation of India’s (FCI) raw rice target.

In a letter to the Union Minister, Uttam brough to the notice of the Centre that there was a mismatch between the state’s booming paddy production and the Centre’s shrinking procurement allocations. Currently, 8.45 lakh metric tonnes (LMT) of rice are yet to be delivered. The original deadline of February 28 has already passed, and the state has sought a 60-day extension.

The Minister noted that Telangana paddy’s superior grain characteristics and lower moisture levels make it ideal for boiled (parboiled) rice conversion. Rice millers have agreed in principle to supply with only 5 per cent broken rice, offering a practical solution, he added.

He sought enhancement of the boiled rice target by 20.00 LMT for the entire KMS 2025-26 (covering both Kharif and Rabi seasons).

Uttam also stressed the need for further extension of two months for Rabi 2024-25 deliveries. The state procures paddy on behalf of the union government under the Decentralised Procurement Scheme to ensure Minimum Support Price (MSP) for farmers and prevent distress sales. However, the Centre’s policy of reducing Custom Milled Rice (CMR) and boiled rice targets has left Telangana struggling with excess stocks, storage costs, milling expenses, and interest liabilities.

Telangana has seen exponential growth in paddy output post-2023 due to improved irrigation and farmer-centric policies, the Minister emphasised, adding that continued procurement is essential to safeguard interests of lakhs of farmers, but the state can’t indefinitely bear the financial strain of excess paddy without adequate central support in the form of higher boiled rice allocations and timely extensions.

This article has been republished from The Hans India.