Paddy farmers in Telangana are finding attractive buyers willing to pay substantially more than the government’s minimum support price. But the rush to secure their produce is also raising concerns about the availability of rice in the coming months, as traders compete for supplies amid a poor crop outlook and rising retail prices.
Private traders from Maharashtra, Karnataka and Tamil Nadu are reportedly offering Rs 4,000-4,600 per quintal, depending on the variety. The prices offered by State governments are significantly higher than the Centre’s MSP of Rs 2,440-2,460 per quintal.
The Telangana government has also announced a bonus of Rs 500 per quintal for seven fine-rice varieties. Advance payments and supply agreements are helping private buyers secure stocks even before harvesting is complete in some areas.
The purchases are underway acorss Nizamabad, Karimnagar, Khammam and Rangareddy districts of Telangana, with traders from Maharashtra also offering advances to farmers in Moinabad, Shankarpally, Poddutur and surrounding areas.
The rush comes amid a sharp increase in retail rice prices. Fine rice in Hyderabad is selling at Rs 85–90 per kg, while the price of a 25-kg bag has risen by Rs 300–400 over 30–45 days. Households and kirana store owners are worried that prices could touch Rs 100 per kg if supplies tighten further.
A rice trader, speaking about the situation, said prices had risen by around Rs 20 per kg in just 45 days in the market he was tracking, a sharp increase that he said was unprecedented in his experience. He attributed the surge to poor rainfall, uncertain crop prospects and farmers, millers and stockists holding back supplies.
“Even the crop expected this year may not reach 50 per cent of normal production,” he said, adding that the lack of water had created uncertainty over how much of the standing crop would ultimately be harvested.
Buyers are active in Nizamabad, Karimnagar, Khammam and Rangareddy districts, with Maharashtra traders reportedly offering advances in areas including Moinabad and Shankarpally. The trader said Tamil Nadu buyers were also procuring substantial quantities in Andhra Pradesh for transport to other markets.
He said rice in some neighbouring markets was selling for Rs 70–80 per kg, while prices in his market varied by variety. Sona Masuri, Telangana Sona (R&R), Jency, Ramdev Baba, Super Five and BPT are among the varieties traded.
Private buyers are attracting farmers by offering fewer procurement hurdles. Government procurement centres had yet to begin operations for the season, reports said. At government centres, farmers may face quality checks, deductions of two to three kg per bag and long waits.
The supply concerns come as a preliminary assessment identified 215 mandals facing drought conditions in Telangana. The trader said fresh paddy arrivals from major producing areas such as Nizamabad and Warangal were delayed. Even if arrivals begin in the next 10-15 days, the quantity remains uncertain. He also cited inadequate water and El Niño concerns, while the government has indicated that irrigation water may not be available for a second crop in affected areas. Farmers have also been urged to avoid paddy cultivation during the Yasangi season.
The uncertainty is compounded by concerns over national rice cultivation and yields, although the eventual impact on production will depend on the actual harvest.
Tenant farmers, meanwhile, fear they could miss out on drought relief if assistance goes to landowners. The Telangana Tenant Farmers Recognition Sadhana Committee estimates that the State has nearly 22 lakh tenant farmers and is demanding Cultivator Cards. A four-member Cabinet subcommittee headed by Deputy Chief Minister Mallu Bhatti Vikramarka was constituted in August to examine the issue. The committee wants annual registration and assurances that cards will not confer ownership rights on tenants.
Higher market prices could also make government procurement of fine paddy difficult. The trader said even a Rs 1,000-per-quintal bonus might not persuade farmers to sell Sona Masuri to the government if private buyers continue offering better rates. Existing government stocks may help meet immediate ration-shop requirements, but a weak harvest could make replenishment harder.
Consumers, meanwhile, remain vulnerable to further price rises if supplies tighten in the coming months.