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Uttam places three key demands before Centre on paddy procurement

© Provided by The Rahnuma Daily

Uttam places three key demands before Centre on paddy procurement

Hyderabad, April 9 (RAHNUMA): Minister for Irrigation and Civil Supplies N. Uttam Kumar Reddy has formally placed three specific demands before the union government to address the mismatch between the state’s booming paddy production and the centre’s shrinking procurement allocations.

In an official letter addressed to Union Food Minister Prahlad Joshi on Thursday, the Minister highlighted the challenges of handling excess stocks while protecting farmers from distress sales.

He requested reallocation of 5 LMT boiled rice target for Rabi 2024-25 by reducing the FCI raw rice target. Currently, 8.45 LMT of rice is yet to be delivered. The original deadline of 28 February, 28, 2026 has already passed, and the state has sought a 60-day extension, Uttam Kumar Reddy said.

The Minister stated 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% brokens, offering a practical solution, he said.

Uttam Kumar Reddy sought enhancement of the boiled rice target by 20.00 LMT for the entire KMS 2025-26 (covering both Kharif and Rabi seasons) — a significant jump from existing levels to better align with the state’s rising production capacity.

He also stressed the need for further extension of two months for Rabi 2024-25 deliveries. This is necessitated by pending physical verification of Kharif paddy stocks and the need for additional processing time, Uttam Kumar Reddy said.

The Minister stated that the current Congress government, which assumed power in December 2023, has witnessed a rapid surge in paddy production in both Kharif and Rabi seasons.

The state procures paddy on behalf of the Union government under the Decentralised Procurement Scheme to ensure Minimum Support Price (MSP) to farmers and prevent distress sales, Uttam Kumar Reddy said.

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, the Minister said.

Historical data shared in the letter shows a declining trend in the percentage of boiled rice delivered to FCI, dropping to as low as 66.78% in 2024-25, despite consistent procurement efforts. Telangana has seen exponential growth in paddy output post-2023 due to improved irrigation and farmer-centric policies, he pointed out.

The Minister emphasised that continued procurement is essential to safeguard lakhs of farmers, but the state cannot indefinitely bear the financial strain of excess paddy without adequate central support in the form of higher boiled rice allocations and timely extensions.

He appealed to the Union Minister to consider the issues favourably.

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