Telangana farmers in despair: Rs 1,160 crore bonus delay clouds record kharif Paddy harvest

Over four lakh Telangana farmers are protesting against the delay in Rs 1,160 crore bonus payments for fine paddy sales from last season. The prolonged wait, officials say, is due to a cash crunch, but farmers fear worsening debt and distress

Hyderabad: Despite the prospects of a bumper paddy harvest this Kharif, farmers across the state are in despair due to the delay in payment of bonus. Over four lakh Telangana farmers are locked in a standoff with the state government, demanding the release of Rs 1,160 crore in pending bonus payments from last season’s fine paddy sales.

Protests have been reported across major paddy-growing districts like Nalgonda, Khammam, and Karimnagar, where debt-ridden growers warn that the three-month delay in clearing bonus dues could derail investments in the upcoming crop season. Kharif paddy is projected to yield 148.30 lakh tonnes, the highest so far, valued at Rs 23,000 crore in procurement.

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The crisis dates back to the 2025 Yasangi (Rabi) season when the government procured 74 lakh metric tonnes of paddy, including 23.19 lakh tonnes of premium fine variety. Farmers were promised a Rs 500 per quintal bonus over the Minimum Support Price (MSP), a move aimed at boosting the cultivation of fine rice.

While MSP dues have been cleared, the bonus payments remain on hold amid a severe cash crunch and bureaucratic delays. M Narsaiah, a 55-year-old farmer from Mannegudem in Mahabubabad district, said loans were piling up as the Rabi activity is about to begin. Many fear defaulting on repayments, which could trigger another wave of rural distress and suicides.

Sown across a record 66.8 lakh acres, the Kharif crop promises a yield of 148.30 lakh tonnes, evenly split between 40 lakh tonnes each of fine and coarse varieties. The government has mobilised 8,342 procurement centres, though a majority of them are yet to be opened. Officials aim to procure 80 lakh tonnes costing Rs 23,000 crore, but the shadow of last season’s shortfall looms large.

Officials termed the payment delay a “temporary hurdle” and assured clearances within weeks, citing funds to be diverted from other schemes. “Farmer welfare is a priority. Delays will not recur,” an official said. However, farmers remain sceptical of such assurances.

• Rs 1,160 crore bonus for 23.19 lakh tonnes of fine paddy from Yasangi 2025 remains unpaid
• Kharif 2025 projects record 148.30 lakh tonnes from 66.8 lakh acres, split evenly between fine and coarse varieties, with 8,342 procurement centers ready.
• State targets 80 lakh tonnes procurement worth Rs 23,000 crore, but timely payments are crucial for farmers’ input investments.
• With the bonus payments likely to escalate to Rs 2,000 crore in the Kharif season. Pressure is mounting to clear last year’s arrears and prevent financial distress