Rice exporters from neighboring States flock to paddy growing districts in Telangana
The Telangana Civil Supplies Corporation is currently gearing up with the necessary infrastructure to commence full-fledged procurement from the third week of October
Hyderabad: In a strategic move to capitalize on early harvest operations, rice exporters have been flocking to the major paddy-producing districts of Telangana. Their goal is to secure an early bird advantage before the State agencies, responsible for minimum support price (MSP) operations, can establish their presence.
The Telangana Civil Supplies Corporation is currently gearing up with the necessary infrastructure to commence full-fledged procurement from the third week of October, particularly after the Dasara festival. Anticipating this move, traders from Karnataka have already made significant inroads into Nizamabad, one of the State’s key paddy-producing districts.
Over the past week, these traders have purchased more than 60,000 tonnes of paddy in Nizamabad. They have shown a marked preference for the BPT variety, also known as Samba Masuri or BPT 5204, a popular medium-grain rice variety renowned for its excellent grain quality. This early purchase by Karnataka traders is seen as a competitive strategy to dominate the market before the state agencies can intervene, ensuring they secure the best quality paddy at competitive prices. Exporters aim to gain an early advantage before MSP operations begin.
Trades from Tumkur and Raichur have been actively purchasing paddy in Telangana, offering prices between Rs 2,450 and Rs 2,500 per quintal, which is higher than the Minimum Support Price (MSP) of Rs 2,320 for Grade A paddy. This rush comes in the wake of relaxed paddy export curbs, raising farmers’ hopes for better returns from the Kharif season. The initial prices have not met farmers’ expectations.
The Telangana Civil Supplies Corporation is preparing for full-scale procurement post-Dasara, but the process has yet to gain momentum in Nalgonda, another major paddy-producing district. While arrivals at paddy purchase centers have started to increase, actual purchases remain slow. Traders are keen to leverage early harvests to maximize their gains, but the Civil Supplies Corporation, which has set a target to purchase 91 lakh tonnes of paddy during the Kharif marketing season this year, is still grappling with infrastructure issues. The corporation needs over 19 crore gunny bags for the planned purchases.
