Telangana’s paddy farmers struggle as prices dip amid brisk harvest operations

They were looking forward to better prices than the Minimum Support Price and had invested heavily in this Rabi season's crop

Hyderabad: The price of Rabi paddy in Telangana has taken a sharp downturn, leaving farmers distressed during the peak harvest season. In districts such as Nalgonda, Nizamabad and Kamareddy, market yard arrivals have started picking up. However, the farmers, who had pinned their hopes on getting better prices than the Minimum Support Price (MSP) rates as they did during the Kharif season, are now facing disappointment. Selling paddy at government paddy procurement centres (PPCs) has also proven to be not so hassle-free.

The fine varieties of Rabi paddy, which fetched Rs 2,470 to Rs 2,480 per quintal just three weeks ago, are now offered only Rs 1,800, registering a worrisome decline. This slump is a shock for farmers, who had invested heavily in this season’s crop. With no takers in the open market for the last few days and private buyers inactive on Sundays, many farmers are anxious about the market situation resuming on Monday.

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The Civil Supplies Corporation had planned to open 8,200 PPCs during the Rabi marketing season. So far, only around 800 centres have become operational in districts where the harvest is midway. These centres have strict requirements, including moisture levels of up to 17 per cent. Farmers worry that drying paddy in the open even for half a day in the harsh sun during summer reduces its weight by 10 per cent, leading to financial losses.

While private buyers accommodate moisture issues, farmers must compromise on the price. Local millers, facing space constraints and carrying inventory from past seasons, are reluctant to purchase fresh stocks. Meanwhile, increased Rabi production in neighbouring States and export challenges, including international competition and policy shifts, are also adding pressure to market dynamics.

Despite brisk harvest operations and over 2.5 lakh metric tonnes of Rabi paddy already procured, the dip in prices has left farmers distressed. K V N L Narasimha Rao, a farmer from Nelakondapalli, labelled the price drop as a “curse” for farmers. Unlike the competitive activity witnessed during the Kharif season, where out-of-state buyers boosted rates, the current market is marked by a lack of competition, further hurting the prospects of the farmers.

Distressing Development 

– Rabi paddy prices drop from Rs 2,470-Rs 2,480 per quintal to Rs 1,800 in three weeks

– Only 800 of 8,200 proposed purchase centres are operational

– Stringent moisture content rules causing losses for farmers

– Increased production in neighbouring States, leftover inventory at mills, export issues exerting additional pressure on prices

– Farmers with higher investments this season are caught between stringent norms at PPCs and inactive private markets