Different procurement centers for good, bad rice varieties: Uttam Kumar Reddy

Home Minister Uttam Kumar Reddy reviewed the comprehensive paddy procurement plan for the Kharif 2024-25 season with the Cabinet sub-committee on Paddy Procurement. Deputy Chief Minister Bhatti Vikramarka Mallu, Industries Minister D. Sridhar Babu is also seen. | Photo Credit: Special Editing

Minister of Transport and Irrigation N. Uttam Kumar Reddy announced that the various procurement centers for obtaining various rice (My baby) and various rice (doddu rakam) as the Government has decided to provide a bonus of R500 per quarter for good varieties from this year.

The respective district collectors will come up with location details for both varieties and farmers will be provided with complete information.

The Minister reviewed the comprehensive paddy procurement plan for the Kharif 2024-25 season with the Cabinet sub-committee on paddy procurement. Deputy Chief Minister Bhatti Vikramarka Mallu, Industries Minister D. Sridhar Babu, Principal Secretary Human Resources and Commissioner DS Chauhan, Principal Secretary Agriculture Raghunandan were among those present.

The Committee deliberated on various aspects of planning, including renting godowns, obtaining bank guarantees for rice millers, milling costs, and addressing the problems of drying losses related to paddy.

Mr. Uttam Kumar Reddy emphasized the government’s intention to encourage .farmers to grow good varieties by providing an additional ₹ 500 per centimeter over the Minimum Support Price (MSP) of paddy delivered to Paddy purchasing centers (PPCs). Hard rice will be distributed through the Public Distribution System (PDS) from January 2025, subject to availability.

He said that in order to improve the procurement process, the Department of Agriculture will share information on crops with the Online Paddy Management System (OPMS), ensuring accurate information on the types of paddy grown in the State. This program will make the procurement of goods more efficient, making payments directly to farmers’ accounts.

Similarly, the Public Utilities Department will conduct a comprehensive awareness campaign to educate farmers about the ₹500 per quintal incentive. Additionally, training sessions will be conducted for PPC staff to ensure proper identification of good varieties.

Special equipment such as digital grain caliper and husk removers will be provided to check the quality of good varieties and bags containing good varieties will be sewn with red thread for easy identification, while bags of other varieties will be tied with green thread. Both varieties will be transported separately from the PPCs to the mills, where rice millers will keep them in designated sections to avoid any mixing of the varieties.

The minister said that in order to resolve disputes, the State Government has set up committees at the Revenue Division and District levels to handle any issues related to the identification of paddy varieties. Payments to farmers, including additional incentive, will be processed through the e-Kuber platform managed by the Finance Ministry.

Speaking to the millers, Mr. Reddy encouraged the rice millers to be honest in their dealings, assuring that the Government will do it in an honest and sincere manner. The Minister warned that the State Government will not tolerate any diversion of PDS rice. Rice Millers present their challenges

In the same meeting, the Rice Millers Association of Telangana presented a detailed report to the Cabinet sub-committee, detailing the critical challenges currently facing the industry. The agency highlighted the decrease in paddy availability, with the percentage of paddy milled down to 14% this year. Major mills have seen a 55% to 60% drop in their performance due to reduced paddy procurement.

The organization also noted that inflation has increased the cost of production to R300 per quintal. At the same time, the industry continues to face a 1% tax imposed by the Department of Food and Public Distribution (DFPD).

In addition, the millers are facing serious financial difficulties due to delayed payments from the Government, as payments from the 2016-17 procurement process are still pending, causing cash flow disruptions that have hampered their ability to manage day-to-day operations. The imposition of penalties for non-compliance with Fair Average Quality (FAQ) standards has compounded financial pressures on millers.

The Rice Millers Association has called for immediate financial and regulatory relief from a Cabinet sub-committee, saying the future of the rice milling industry – and the wider agricultural sector – could be at risk without Government intervention.

In response, Deputy Chief Minister Bhatti Vikramarka Mallu assured the millers that their issues will be discussed at the highest levels of the State Government. He said a sub-committee of the Cabinet will submit a report with recommendations to the Chief Minister A. Revanth Reddy for final approval.