Telangana:High demand in open mkt may dampen govt’s fine rice plans

The Congress govt is facing a challenging task of procuring over 24 lakh metric tonnes of fine variety rice to fulfil its poll promise of distributing it to 89 lakh ration card-holding families in place of coarse rice.

The state govt has announced that it plans to start the supply of fine rice to ration card holders through fair price shops from January 2025. However, the task is easier said than achieved. The highest procurement of fine variety of rice in Telangana state was 19 lakh metric tonnes in the 2021-22 crop season.

Sources in the govt said the agriculture department has done its work in encouraging the farmers to take up fine rice paddy cultivation in a larger area compared to previous years by offering an incentive of 500 bonus on every quintal of fine rice, in addition to the MSP. Although the farmers have done it, there are still doubts whether the govt will be able to procure the required 24 lakh metric tonnes for PDS per annum.

While the Congress govt is banking heavily on the 500 bonus to do the trick, it faces stiff competition from private merchants and rice millers as the demand for fine variety rice is high in open market.

“The prices of fine varieties of rice in the open market have already gone over 55 per kg and 65 per kg in the case of premium quality of fine rice. The govt is offering an MSP of 2,300 per quintal for normal variety and 2,320 for A-grade variety. Even if a 500 bonus on MSP is added, the total comes to not more than 2,900 per quintal, whereas the price in the open market is two times more per quintal. If the traders and millers offer better prices, then the govt will fall short of its target procurement. But it is also a fact that traders and merchants make money but offer less margin to the farmers when buying from them,” a rice miller said.

Civil Supplies Minister N Uttam Kumar Reddy told TOI that the govt has its own plans to meet the target and exuded confidence in starting fine rice supply through PDS from January at all costs. “This is a farmer-friendly govt and if they get better prices in the market, it is all the more good and the Congress govt will only be happy for the farmers. But we are committed to start fine rice supplies from the new year,” he asserted.

This article has been republished from The Times of India.