Hyderabad: Irrigation and Civil Supplies Minister N Uttam Kumar Reddy on Saturday announced that the Congress government is examining a new incentive policy to encourage the establishment of export-oriented rice mills in Telangana. He stated that new rice mills set up for exports, as well as existing mills converting their operations towards exports, would be considered for special incentives to boost Telangana’s presence in global rice markets.
Addressing the International Rice and Grains Tech Expo 2026 at HITEX, the minister said Telangana had already become India’s leading paddy-producing and paddy-procuring state and should now aim to become a global leader in rice technology and value addition. The government is working on a comprehensive roadmap for the rice milling sector and is promising policy support for upgrading mills.
Describing rice millers as partners in Telangana’s progress, he said the government wanted farmers, millers, and consumers to benefit together from the state’s agricultural growth. Citing labour shortages often faced by mills and the rice industry, Uttam urged millers to adopt greater mechanisation and automation. “Modern machinery could help reduce dependence on manual labour, improve productivity, and address recurring worker shortages that affect milling operations during peak seasons,” he said.
The minister called for large investments in modern grain storage infrastructure, including steel silos, automated storage systems, AI-based grain monitoring, and digital inventory management. He invited private investors to come forward with proposals for building large-capacity storage facilities through public-private partnership models.
Uttam urged the industry to adopt water-saving and energy-efficient technologies in parboiling plants. Future processing units should focus on reducing water consumption, recycling water, and improving environmental sustainability. Millers should move beyond quality-based processing and focus on nutrition. Technologies such as controlled whitening, precision polishing, nutrient-retention systems, and AI-based quality assessment can help produce healthier rice, he said.
“Telangana is producing nearly 300 lakh metric tonnes of paddy annually and currently accounts for nearly 60% of India’s Rabi paddy procurement. The state government has transferred nearly ₹39,000 crore to farmers’ bank accounts during the Kharif and Rabi procurement seasons, and over ₹96,000 crore since the Congress government assumed office,” Uttam said.
He also highlighted the government’s fine rice distribution scheme and said it was benefiting 3.2 crore people. The state government was incurring an annual expenditure of ₹14,000 crore, he added. Calling for a joint effort by farmers, millers, technology providers, and policymakers, Uttam said Telangana had already become a leader in paddy production and procurement and should now strive to become a global centre for rice technology, innovation, and exports.
