Telangana plans modern storage infra for paddy to protect ryots’ interests
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Civil Supplies Minister N. Uttam Kumar Reddy holding a meeting with the department officials in creating modern storage network for paddy in Hyderabad on Saturday. | Photo Credit: By Arrangement
In a significant move to shield Telangana farmers from distress sales of paddy and suffering post-harvest losses, the State government is working on plans to create modern storage infrastructure such as construction of silos with private participation, if need be.
Building a scientific silos network would act as a major long-term intervention to protect the interests of paddy farmers, Minister for Irrigation and Civil Supplies N. Uttam Kumar Reddy said at a meeting held here on Saturday to review paddy procurement and to discuss two proposed models for establishing the silo infrastructure.
Under the first model, the Telangana State Civil Supplies Corporation (TSCSC) would directly establish silos in a big way by mobilising loans from reputed financial institutions. In the second model, modern storage capacity would be created through private sector participation, the Minister explained.
“The government will encourage private entrepreneurs to establish silo facilities at about 20 locations to be identified across the State initially with the Civil Supplies Corporation providing a rental guarantee to make the investments financially viable,” Mr. Reddy said.
The new system would help preserve quality and helping cultivators secure higher returns from premium paddy varieties. The initiative would further prevent post-harvest storage losses and from distress sales to enable them get better prices for Telangana’s increasingly popular premium paddy varieties, he stated.
The Minister instructed the authorities to finalise the proposals expeditiously, including the financial implications, financing arrangements and rental commitments. He wanted the possibility of securing institutional finance at competitive interest rates to be explored.
Telangana farmers growing premium varieties of paddy were not getting the full value for their produce because of inadequate scientific storage facilities, he said, and added that freshly harvested paddy generally contains around 25% moisture, making it difficult for farmers to store their produce safely.
As a result, many farmers were forced to sell their harvest immediately, sometimes within 24 hours, regardless of the prevailing market prices. The proposed silo system would provide scientific drying and storage facilities, allow them to preserve their produce for longer periods and sell it when market conditions turn favourable.
The Minister pointed out that premium paddy varieties were currently fetching around ₹3,500 to ₹4,500 per quintal when moisture content was measured approximately 25%. The same product, after scientific drying to around 12% moisture, could command prices ranging from ₹5,000 to ₹5,500 per quintal.
He observed that Telangana had emerged as one of the country’s leading paddy-producing States, with several locally cultivated varieties such as JSR, RNR and HMT gaining recognition in the premium rice markets even overseas. He cited the example of JSR rice, which was fetching a relatively higher price in certain markets, compared with the basmati rice.
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