Heated Debate in Telangana Over Rice Export to Philippines
In a fiery exchange on Monday, Irrigation Minister N Uttam Kumar Reddy and BRS deputy floor leader T Harish Rao engaged in a heated debate over the export of rice from Telangana to the Philippines. The confrontation highlighted starkly opposing views on what Uttam termed a strategic initiative and Harish labeled a potential scam.
Uttam Kumar Reddy's Defense of the Export Initiative
Minister Uttam Kumar Reddy passionately defended the rice export deal, describing it as a transformative move aimed at elevating Telangana from a state dependent on the Food Corporation of India (FCI) and burdened with paddy surplus to a globally recognized rice export powerhouse. He emphasized that the government's conscious effort to promote Telangana rice as a premium global brand is designed to safeguard farmers' interests and secure better financial returns for them.
Uttam accused Harish Rao of making baseless allegations, suggesting that the BRS leader's criticism stems from the contract not being awarded to a party he had recommended. "Harish is viewing this government initiative through his own prism in a deliberate attempt to discredit what is seen as an achievement of the Congress government," Uttam stated. He further challenged Harish, proposing that if a House committee is to be instituted, it should focus solely on examining Harish's own dealings during his tenure as a minister.
Harish Rao's Allegations and Demands
On the other side, Harish Rao persisted with his demand for clarity and accountability. He called on Minister Uttam to address several key questions:
- Whether one Prem Chand, an accused in CBI and other cases, was appointed as an advisor in the process.
- Why the contract was awarded to a private party, Aditya Birla Global Trading Company, instead of the National Agricultural Cooperative Marketing Federation of India (NAFED).
- Whether the rice export contract was granted through a transparent tender process or on a nomination basis.
Harish alleged that over 7,500 metric tonnes of rice are still lying idle at the Kakinada port, raising concerns about inefficiency or mismanagement. He also pointed out that the minister evaded clarifying the status of a Rs 1,100 crore bonus on fine paddy pending for farmers, demanding immediate payment.
Details of the Rice Export Deal
In response to the allegations, Uttam provided detailed figures to underscore the success of the export. He revealed that the Telangana rice mission achieved a landmark by exporting 22,750 metric tonnes of rice to the Philippines under a government-to-government (G2G) arrangement, which he asserted is beyond suspicion. The export fetched Rs 3,600 per quintal, marking the highest price ever recorded for this variety in any Indian export deal and surpassing all domestic benchmarks.
Uttam clarified that there is no connection between Prem Chand and the rice export deal, and the contract was awarded to Aditya Birla Global Trading Company as per the Memorandum of Understanding (MoU) with the Philippines government. He highlighted that the government earned a net profit of Rs 1.13 crore and saved an additional Rs 12 crore in carrying costs through this initiative.
Broader Context and Implications
The minister placed the deal in a broader national context, noting that FCI auctions in Andhra Pradesh under the open market sales scheme (OMSS) for 2025-26 failed to attract buyers even at Rs 3,000 per quintal, while paddy in Chhattisgarh averaged only Rs 1,800 to Rs 1,900 per quintal during 2024-25. Without this timely international deal, Uttam warned, Telangana would have faced a potential loss of Rs 13 crore on the consignment.
Currently, the civil supplies department in Telangana holds 86 lakh metric tonnes of rice in storage. The state is now directly engaging with international buyers at the G2G level, positioning its rice alongside established global brands from Thailand, Vietnam, and Cambodia. Uttam emphasized that with excess production nationwide leading to storage shortages, and the Government of India committing to procure only 54 lakh metric tonnes through FCI this year, Telangana's proactive approach—having procured 72 lakh metric tonnes for the kharif season, the highest ever—is crucial for economic stability.
Harish Rao's Continued Protest
Despite these explanations, Harish Rao remained unconvinced. He reiterated that the minister had evaded key clarifications and protested the lack of transparency. "We demanded that a House committee be constituted or that the files be placed with the assembly speaker, but no clarity was given. We are registering our protest," Harish declared, underscoring the ongoing political tension over the issue.
This debate not only highlights the immediate conflict over rice exports but also reflects deeper political rivalries in Telangana, with implications for agricultural policy and governance in the state.
