Civil Supplies Minister Uttam writes to Centre over paddy procurement

Civil Supplies Minister N Uttam Kumar Reddy has urged the Union Government to increase parboiled rice allocations and extend deadlines to address Telangana’s growing paddy stockpile. In a letter to Union Food Minister Pralhad Joshi, he highlighted the mismatch between production and procurement.

Hyderabad: Civil Supplies Minister N Uttam Kumar Reddy has placed three demands before the Union Government to address the mismatch between Telangana’s paddy production and the Centre’s shrinking procurement allocations.

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

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He requested reallocation of 5 LMT boiled rice targets 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, 2026 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 only five percent broken rice, offering a practical solution.

He sought enhancement of the boiled rice target by 20 LMT for the entire KMS 2025-26 (covering both Kharif and Rabi seasons). 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.

The State procures paddy on behalf of the Government of India under the Decentralised Procurement Scheme to ensure Minimum Support Price (MSP) to 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.

The data shared in the letter shows a declining trend in the percentage of boiled rice delivered to FCI, dropping from 92.50 percent in 2019-20 to as low as 66.78 percent in 2024-25, despite consistent procurement efforts.

The Minister emphasised that continued procurement was 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.