Telangana Minister Uttam Kumar Reddy Calls for Strategic Rice Export Plan
In a significant development for Telangana's agricultural sector, Irrigation and Civil Supplies Minister N Uttam Kumar Reddy has emphasized the urgent need to identify and explore potential opportunities for exporting rice from the state. This call to action comes in the wake of a record-breaking procurement of 72 lakh metric tonnes during the recent Kharif season, creating substantial stockpiles that require strategic disposal.
High-Level Strategic Review Meeting
Minister Reddy convened a comprehensive high-level strategic review meeting on Saturday, bringing together senior scientists from the prestigious Professor Jayashankar Telangana State Agricultural University (PJTSAU) along with top officials from both the civil supplies and agriculture departments. The extended session involved hours of detailed analysis, during which participants meticulously examined the multifaceted challenges surrounding paddy and rice procurement and disposal.
The meeting culminated in the formulation of a multi-pronged action plan designed to address these pressing issues systematically. Minister Reddy specifically directed university officials to provide substantive suggestions that would enable the department to draft a comprehensive policy framework. This policy aims to facilitate the government's exploration of potential export markets while simultaneously promoting rice varieties that demonstrate both strong demand and premium pricing in international markets.
Proposed International Engagement and Policy Development
Minister Uttam Kumar Reddy articulated a clear vision for Telangana's representation in global agricultural forums, stating emphatically that "the state must be represented in every overseas forum that deals with the export of rice." To operationalize this vision, he proposed organizing a two-day international meeting that would invite representatives from countries expressing interest in importing rice from Telangana.
Furthermore, Reddy announced plans for an additional brainstorming session involving university representatives and relevant department officials. This session will focus specifically on exploring the scope for rice exports from Telangana and discussing policies related to crop diversification strategies. The minister indicated he would seek the participation of Chief Minister A Revanth Reddy and Deputy Chief Minister Mallu Bhatti Vikramarka in this crucial policy discussion.
Procurement Context and Financial Implications
The urgency of developing an export strategy is underscored by Telangana's remarkable agricultural productivity. The state's paddy procurement has dramatically exceeded central government targets, reaching over 72 lakh metric tonnes this season against the Centre's allocation of just 50 lakh metric tonnes. This substantial surplus has created significant financial pressures on state resources.
The Telangana government has invested approximately Rs 19,500 crore in procurement operations and bonus payments to farmers, with an additional Rs 6,000 crore allocated for storage infrastructure and interest expenses. This brings the total expenditure close to Rs 25,500 crore, prompting Minister Reddy to call for swift action to prevent further escalation of these substantial annual outlays.
Global Market Dynamics and Economic Realities
Minister Reddy's review extended to broader market conditions, noting that global rice markets currently offer limited immediate relief for surplus stocks. India is projected to produce a record 160 million metric tonnes of rice in the 2025-26 period, with Telangana contributing a substantial 10 to 11 percent of the national paddy output.
The market context presents additional challenges:
- The Food Corporation of India currently holds approximately 67 million tonnes of rice equivalent in storage
- International white rice prices have experienced a significant decline since India lifted its export ban
- Prices for 5% broken rice have fallen from $650 to approximately $350 per tonne
- Current Kakinada Free on Board prices hover around $360 per tonne
- This translates to an ex-warehouse realization of about Rs 29 per kilogram
Minister Reddy also emphasized the need to scale up procurement targets allocated to Telangana by the Food Corporation of India, reflecting the state's consistently increasing paddy production year after year. The comprehensive strategy being developed aims to transform Telangana's agricultural surplus from a storage challenge into an economic opportunity through strategic international market engagement.
