Telangana Farmers Troubled by Falling Paddy Prices

14-Apr-2025 11:00 AM

Hyderabad: Farmers in Telangana are growing increasingly concerned as paddy prices in the open market continue to fall sharply, just as harvesting of the Rabi season crop begins.

While government procurement at the Minimum Support Price (MSP) is underway to shield farmers from distress sales, it has had little impact on market prices so far.

Despite being a leading producer of Rabi paddy, private buyers and rice millers are showing minimal interest in mandis.

Though the estimated price range for general paddy was Rs. 2320–2530 per quintal and for 'A' grade Rs.2630–2970, fine variety paddy is selling at just Rs. 1900–2000 in the open market — well below cost levels for many farmers.

The Rabi paddy marketing season in the state spans March to May. Historical price estimates based on 22 years of data from Suryapet and Jammikunta had raised hopes, especially after the removal of export restrictions on rice.

However, exporters and processors have not responded as expected, leaving farmers disappointed.

Unseasonal rains have also affected crop quality, and stringent government quality standards for MSP procurement are adding to the burden. Reports indicate that millers are deducting up to 4 kg per quintal, amplifying farmer losses.

Outlook: Unless market support improves or intervention increases, farmers may continue to face financial stress, with many struggling to even recover their production costs.