Telangana’s rice exports have fallen 20-30% so far in CY’25 due to high procurement and milling costs; falling domestic demand due to preference for subsidised material; and competitive pricing from other domestic and global exporters.
Notably, cheaper rice from Thailand and Vietnam is taking over markets such as Saudi Arabia, the UAE, and West Africa, where Telangana once had strong demand. Meanwhile, from India, Andhra Pradesh and Punjab were able to export more cheaply, selling premium varieties at $400-450/tonne (t), while Telangana’s rates remained higher. Demand has also softened, leading to lower exports. In April 2025, the Philippines bought 100,000 t of rice, but they have now banned fresh imports.
Domestically, rice mills have cut operations by over half, with wholesale sales plummeting as consumers opt for free or subsidised Public Distribution System (PDS) rice. Political tensions, payment delays, and higher costs have also made exports uncompetitive.
Consequently, millers are calling for urgent reforms to make the sector competitive again. Millers have warned that the state could lose global market share unless policies are reviewed.
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