Telangana farmers hit hard by rising crop investment costs

Farmers across Telangana are facing steep hikes in cultivation costs due to high prices of fertilizers, seeds and labour. Paddy, cotton and chilli growers report rising debts as crop prices remain low, leaving small and tenant farmers with mounting financial stress

Hyderabad: Telangana’s farmers are facing problems due to a steep hike in crop investment costs. They are spending more on growing crops because of the soaring prices of fertilizers, pesticides, labour and seeds, but crop prices remain low. The costs involved in cultivation now range from Rs 38,000 to Rs 45,000 per acre for main crops like paddy, pushing many small farmers into deeper debt.

Paddy is the State’s main crop. Costs have increased due to the non-availability of local workers. Farmers are now hiring labour from nearby States like Chhattisgarh and Maharashtra, which has raised expenses to Rs 35,000 to Rs 45,000 per acre. Pest control alone costs Rs 2,000 to Rs 5,000 per acre. The continuing fertilizer crisis has forced farmers to buy their urea supplies from private traders, spending Rs 200 to Rs 300 more on a 45 kg bag.

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“These costs are needed to keep going, but they are drowning us in debt,” says K Ramulu, a small farmer from Mannegudem in Mahabubabad district. Cotton and chilli farmers say the cultivation costs are 20 to 30 per cent higher than last year. Tenant farmers make up 35 per cent of the workforce. They get no government aid from Rythu Bharosa or cheap fertilizers. Many turn to informal loans with very high interest rates.

Farmer debt is rising fast. These loans trap them in a cycle of trouble. Cotton’s future looks bleak this year as prices at markets are much lower than the minimum support price. Super fine paddy gets good prices in export markets, but only big farms benefit. Regular paddy sells for less. Growers of groundnut, chilli and red gram are protesting against big price falls. They cannot cover costs even after planting on more land.

Unseasonal rains in May this year ruined paddy on thousands of acres in districts like Peddapalli and Karimnagar. This added to losses, and many farmers lack proper crop insurance. Paddy cultivation costs have gone up steeply by 15 to 20 per cent. Fertilizers form the biggest part of these costs, hitting farmers hard. Some bought urea for Rs 600 for a 45 kg bag. This is the season when farmers use a lot of urea for paddy, cotton and chilli.

But chances of a proportionate rise in family income look dim.