State government to procure stocks only as per Centre’s quota
The Telangana Cabinet has decided to adhere strictly to the Centre’s procurement guidelines, limiting purchases at MSP to the quota approved by the Union government. Ministers expressed concern that reduced procurement could hurt farmers, particularly after the State recorded bumper harvests.
Published Date - 18 June 2026, 10:07 PM
Hyderabad: In a move that could leave the farming community worried, the Telangana government has decided to strictly follow the Centre’s procurement guidelines and purchase stocks at the Minimum Support Price (MSP) only within the quota approved by the Union government.
Addressing the media after an informal Cabinet meeting on Thursday, the Civil Supplies Minister N Uttam Kumar Reddy said the State had procured a record 80 lakh metric tonnes of paddy during the Yasangi season. However, the Cabinet expressed concern over the Centre procuring a lower percentage of paddy from Telangana compared to some other States. The State government has demanded that the Centre procure the entire paddy stock produced in Telangana, he said.
The decision to limit procurement to the Centre’s quota has raised concerns among farmers. During the last season, the Centre agreed to procure 52 lakh metric tonnes of paddy from Telangana despite a bumper harvest. If the Centre fixes a procurement quota that is significantly lower than the State’s production, farmers could face difficulties in disposing of their produce, as the State has decided to procure stocks only within the approved quota.
The Agriculture Minister Tummala Nageshwar Rao said the State government had procured nearly 15 lakh metric tonnes of maize. However, central agencies were not procuring crops to the extent expected under the MSP framework, he added. He urged the Centre to fulfil its constitutional and policy responsibilities by ensuring procurement of paddy through the FCI, cotton through CCI and other crops through the National Agricultural Cooperative Marketing Federation.
The State government also announced that Telangana Ministers and Members of Parliament would soon visit New Delhi to mount pressure on the Centre on procurement-related issues.
Bonus for seven fine rice varieties
The Civil Supplies Minister said the Cabinet had approved a bonus for only seven popular fine rice varieties cultivated in the State. The bonus will be applicable to BPT-5204, RNR-15048, HMT Sona, Jai Sriram, KNM-1638, WGL-44 and KNM-7715. Defending the decision, the Agriculture Minister said it was based on market demand and consumer preferences. He said these varieties account for nearly 83 per cent of the fine rice cultivated in Telangana and enjoy strong demand even outside the government procurement system.
Rythu Bharosa from June 30
The State government has decided to formally launch the distribution of Rythu Bharosa assistance at a Rythu Sammelan to be held in Madhira, Khammam district, on June 30.
Demand for additional fertiliser allocations
The Ministers expressed concern over fertiliser allocations to Telangana. They said the Centre had assured monthly allocations of around two lakh metric tonnes of urea but had not supplied the promised quantities during the last three months. They also demanded that a larger share of urea produced at the Ramagundam Fertilizers and Chemicals Limited plant be allocated to Telangana instead of being transported to other States.
Advisory on sowing operations
In view of forecasts indicating below-normal rainfall and possible dry spells, the government advised farmers not to begin sowing immediately after the first rains. The Agriculture Minister said at least two spells of around 7 mm rainfall each would generally be required to create suitable moisture conditions for germination and crop establishment. He advised farmers to avoid premature sowing, which could result in crop losses if dry spells follow.
Other key decisions
Metro expansion
The Cabinet wanted the Centre to expedite approvals for Hyderabad Metro Rail Phase II expansion, besides releasing IRFC loan amount. Union Ministers and BJP MPs from Telangana were appealed to support the project in the interest of Hyderabad commuters.
Free RTC travel for NEET candidates
The government also announced free travel in TGSRTC buses for students appearing for the NEET examination. Around 2.95 lakh students are expected to appear for the examination at nearly 2,008 centres across the State. Students will be allowed to travel free of cost on production of their hall tickets.
Sub-committee on MGNREGS changes
Panchayat Raj Minister D Anasuya said the government had constituted a Cabinet sub-committee to examine the implications of the Centre’s proposed changes to the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The committee will study developments in other States, assess the financial burden on Telangana and recommend the State’s future course of action on the proposed reforms. It will also consult stakeholders and submit its recommendations to the government shortly, she added.