Telangana farmers cash in as rice prices soar; buyers pre-book paddy harvest

Paddy farmers in Telangana are earning more this harvest season, selling their produce in open markets at around ₹3,000–₹3,500 per quintal of fresh fine rice, compared with the minimum support price (MSP) of about ₹2,450 plus a ₹500 bonus for fine varieties. Alongside these open-market sales, some farmers are receiving advance bookings from individual buyers who want to lock in today's prices against a possible further increase.

The situation is a marked change from the previous harvest, when farmers waited several weeks for their produce to be lifted from Paddy Procurement Centres (PPCs) and sold to rice mills. The higher open-market rates are being reported even as the State government has urged farmers to avoid sowing paddy in the Rabi (Yasangi) season, citing a water shortage linked to El Niño conditions.

In Vikarabad district, a buyer who gave his name as Ramu said he had paid ₹5,000 per quintal in advance to a farmer. "We used to buy a kg of rice for around ₹45, which now costs over ₹90. I paid the advance anticipating that prices will rise further," he said. A paddy farmer in the same district, Mahesh, confirmed that individuals had approached him to pre-book part of his harvest. Under these arrangements, farmers process the paddy and hand over the grain in gunny bags.

Similar reports have come from Hyderabad, Khammam and other districts, where consumers fear rice could touch ₹100 a kilogram. Sangani Yadaiah, a Kisan Mitra field coordinator in Vikarabad, said he was taken aback by the pace of the increase. "We have heard of such instances of people pre-booking harvest. Whether farmers lose out on potential profits if prices rise further, or buyers lose money if prices fall, remains to be seen," he said. Donthu Rambabu, joint secretary of the Telangana Rythu Sangham, said he too had learnt of pre-bookings and of farmers selling in open markets.

Farmers who sowed early began harvesting from the beginning of October, and the harvest will continue until December, which means more grain will reach the market in the coming weeks. Selling through government PPCs involves drying the fresh harvest for about ten days to bring moisture content down from 35% to 17%, transporting it to the procurement centre, hiring tarpaulin sheets in case of rain and paying labour to spread the grain for drying.

"This season, farmers are selling the harvest in open markets and getting over ₹3,000 per quintal of fresh produce which has up to 35% moisture. Though there is a chance of getting ₹4,000 to ₹5,000 in the coming weeks, some farmers whose crops are ready do not want to lose them to rain," Mr. Rambabu said.

Chintanippu Muralidhar Rao, a farmer from Somavaram village in Khammam district, sold his fresh produce for about ₹3,300 per quintal. "Now we only have to get the yield and keep it aside. Buyers pick it up from our farm," he said, recalling that the last time produce was lifted from his field was about 20 years ago, before the supply chain became more organised. Not every farmer has gained equally: Sai Yadav of Devulamma Nagaram in Yadadri district said he sold his fresh harvest a few days ago for ₹2,200 per quintal.

For the government, higher open-market prices can mean a smaller quantity of food grain arriving at procurement centres. Rising food prices, adverse weather and crop losses were factored into a recent review by Civil Supplies Minister N. Uttam Kumar Reddy on strengthening food grain security for beneficiaries of the Public Distribution System (PDS). Telangana's annual requirement of rice is approximately 28.56 lakh metric tonnes to sustain the Central pool for the PDS, other welfare schemes and the State pool, including the mid-day meal programme. According to the Civil Supplies Department's stock position as of October 16, the State held 9.64 lakh metric tonnes of rice.

How the season unfolds will depend on the pace of the harvest through December, the government's procurement response and whether the dry spell affects Rabi sowing. For now, farmers with ready crops face a straightforward calculation: take a firm price today, or hold on in the hope of a better one.