Paddy prices in Telangana have reached unprecedented levels in the open market, bringing substantial returns to farmers during the ongoing Kharif season. At the Kesamudram Agricultural Market in Mahabubabad district, the Jai Sriram variety fetched a record Rs 5,016 per quintal, marking a new high. Fine paddy varieties are also commanding prices ranging from Rs 3,000 to Rs 3,500 per quintal in districts such as Nalgonda, Karimnagar and Khammam.
The sharp increase in prices comes amid changing supply conditions and growing demand from private traders and rice millers. Paddy cultivation during the current Kharif season is estimated to have declined by approximately 14 per cent compared with last year, while concerns surrounding El Niño have added uncertainty to production forecasts.
Demand from traders and rice millers in states including Karnataka, Maharashtra and Tamil Nadu has intensified competition in the market. Some traders are reportedly offering advance payments to farmers to secure supplies, contributing to higher procurement prices.
The widening gap between government procurement rates and open-market prices is emerging as a challenge for Telangana’s paddy procurement programme.
The minimum support price (MSP) for Grade-A paddy stands at Rs 2,461 per quintal. The state government provides an additional bonus of Rs 500 per quintal for seven designated fine paddy varieties, taking the total procurement price to as much as Rs 2,961 per quintal for eligible Grade-A produce.
However, with private traders offering Rs 3,500 per quintal or more, many farmers are reportedly showing greater interest in selling their produce in the open market rather than at government procurement centres.
This development could complicate the government’s efforts to procure fine rice for distribution through the Public Distribution System (PDS).
While higher paddy prices are benefiting farmers, consumers are facing increased expenditure on rice. Retail prices of certain premium fine rice varieties have reportedly climbed to Rs 90–100 per kilogram in some markets.
One farmer welcomed the rising prices, saying, “I never expected paddy prices to increase so suddenly. The higher rates will greatly benefit farmers.”
Telangana Chief Minister A. Revanth Reddy has attributed the increase in fine rice prices to El Niño conditions. Revanth Reddy also recalled that his government’s decision to encourage the cultivation of fine paddy varieties had initially attracted criticism, but said farmers were now benefiting from higher market prices.
Besides Jai Sriram, other fine paddy varieties, including RNR, are also reportedly commanding prices of up to Rs 4,300 per quintal.
With harvesting expected to gather momentum during November and December, the direction of paddy prices in the coming weeks remains uncertain.
