Telangana: Drop in Price Discourages State Govt from Exporting Rice

By Md Nizamuddin

Despite a bumper harvest and a procurement target of 80 lakh metric tonnes (LMT), Telangana is unlikely to export rice this season because of a sharp fall in market prices.

The government made an aggressive sales pitch to foreign buyers at the recently held Bharat International Rice Conference in Delhi, but it failed to seal any substantial deal. The Philippines remains the last country to seal a government-to-government deal on rice export.

Though the officials explored opportunities to export parboiled rice to West Africa, the drop in prices altered plans. “Due to bumper production this season, there has been a significant drop in prices. Last year, it was `36 per kg, and now it is not more than ₹30 for MTU1010. Exporting under these conditions would result in a huge loss. There is no possibility of exporting this season,” a civil supplies department official told Deccan Chronicle.

Paddy procurement has picked up and will continue till the end of January 2026. So far, the civil supplies department has procured 32 LMT, including 15 LMT of fine (sannalu) and 17 LMT of coarse (doddu) varieties. Officials remain optimistic about achieving the 80-LMT target due to high production. “Currently, production is sufficient to cater to domestic needs. Exports may be considered only if the Central government refuses to accept our contribution to the Central pool, as godowns are already full of grain,” the official added.

Over the past decade, Telangana has tripled its rice production, emerging as the largest rice producer in India. The state produces around 2 crore LMT annually, while its consumption requirement is 50 LMT. A share of the produce is contributed to the Central pool through the Food Corporation of India (FCI), leaving 50–60 LMT surplus every year.

In March, Telangana exported its first-ever rice consignment to the Philippines, marking the state’s entry into the global rice export market. Minister Uttam Kumar Reddy flagged off a shipment of 12,500 metric tonnes from Kakinada Port. The Philippines government agreed to import 1 LMT of rice and 8 LMT of paddy after quality assessment, following the signing of an MoU with Telangana. The MTU1010 variety exported was priced at `36,000 per metric tonne.

Experts tracking exports from Kakinada Port, from where most of Telangana’s rice is shipped, point out that India has seen an “oversupply” of rice this season and many countries — including the Philippines — have already stocked heavily, partly through private importers from India.

“There is stiff competition from Pakistan and Thailand, which have reduced prices. This is the first time I am witnessing such a steep price fall for the variety exported to the Philippines. The market price has dropped below the production cost. It is time farmers shift to cash crops or enhance the production of cereals, which we are forced to import despite being traditionally grown here,” said M.S. Kumar, director, Cocanada Chamber of Commerce.

This article has been republished from The Deccan Chronicle.