Paddy farmers in Telangana grapple with uncertainty amidst market challenges

Agricultural Market Intelligence Centre at PJTSAU projects Paddy Grade-A and Paddy-Common could trade in the price ranges of Rs 2,630-Rs 2,970 and Rs 2,320-Rs 2,520 per quintal, respectively, in initial weeks of harvest season; prices fall short of farmers' expectations, especially after heavy investments to save crops from water scarcity

Hyderabad: Paddy farmers in Telangana are facing uncertainties during the ongoing Rabi season, with market prices and climatic conditions adding to their woes.

The Agricultural Market Intelligence Centre at the Professor Jayashankar Telangana State Agricultural University (PJTSAU) has projected that Paddy Grade-A and Paddy-Common could trade in the price ranges of Rs 2,630-Rs 2,970 and Rs 2,320-Rs 2,520 per quintal, respectively, in the initial weeks of the harvest season. These prices fall short of farmers’ expectations, especially after heavy investments to save their crops from water scarcity.

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The minimum support price for A-grade paddy is set at Rs 2,320 per quintal, with an additional Rs 500 for fine varieties. However, this MSP is not seen as encouraging, given the higher input costs for Rabi crops compared to Vanakalam crops.

Adding to the challenges, water scarcity has put paddy crops in over 8 lakh acres at risk, with groundwater levels plunging across the State. Farmers have resorted to hiring water tankers and digging borewells, but the high costs and frequent failures have forced many to abandon their crops.

On the export front, while India has seen a surge in rice exports, including 20.31 lakh MT in November 2024, the rising global production and strong harvests in India could exert downward pressure on prices. The Indian rupee’s record low in February has enhanced traders’ margins, but market stability remains uncertain, hinging on future demand and policy decisions.

As the Rabi paddy arrival started picking up, the State government has planned to procure 70 lakh tonnes of paddy during this Rabi season, but it would be hard to realise the target as in the case of Kharif. Delays in bonus payments and the influence of the millers that has been impacting the confidence levels of the farmers are likely to impact the operations.

This year, the State has witnessed a surge in paddy production, with total output projected to reach 1.21 crore tonnes. The government has announced plans for the establishment of 8,200 procurement centers across the State, which will commence operations in a week.

They are aimed at streamlining procurement processes and ensuring fair pricing for farmers. The Food Corporation of India (FCI) has approved the inclusion of 52 lakh tonnes of paddy from Telangana for inclusion in the central pool for the public distribution system (PDS).