Why is Telengana emerging as rising player in India’s rice matrix

• Telengana becomes highest rice producer in 2023-24
• Poll bonanza converting other crop areas into paddy fields

The Indian paddy cultivation (rice production) field is seeing a growing shift in the production matrix. What was traditionally Uttar Pradesh’ hegemony, is now being challenged by Telengana.

While India’s paddy production has remained substantial in recent years, a handful of states have been contributing the lion’s share. As per information from the Ministry of Agriculture and Farmers Welfare and other state-level data sources, in 2023-24, Uttar Pradesh was the top state in paddy production, with an estimated 20.09 million tonnes (mnt). Telangana came in second with 17.1 mnt, and West Bengal third with 16.5 mnt. These states continue to lead production because of their favourable agro-climatic conditions, strong irrigation infrastructure, and high cropping intensities. Additionally, robust government support has also aided rice production.

Telengana’s ascendance

However, Telengana’s ascendance in India’s rice market is unmistakable. As per data, the state played catch-up with largest producer Uttar Pradesh (UP) in 2022-23 with 159 mnt against the latter’s 161 mnt. In 2023-24, Telengana overtook UP (160 mnt) with a healthy 169 mnt. Although this southern state’s production dropped to second spot again in 2024-25 with 171 mnt against UP’s leading 209 mnt, the CAGR growth from 2020-2021 till 2024-25 was at a healthy 11%. Only Madhya Pradesh’s grew at a higher 16% but on a far lower base.

In fact, paddy acreage in Telengana rose 50% of the total kharif crop area from 0.76 million hectare (mn ha) in 2017 to 1.82 mn ha as of 13 August 2025. In rabi, the acreage spurred by 75% from 0.74 mn ha in 2017 to 2.42 mn ha in 2024-25.

Why is Telengana’s production rising?

Election bonus promise: Telengana has been producing paddy on over 50 million ha per year instead of diversifying to other crops. In fact, experts suggest around 100,000 ha can de diverted to other crops like pulses and oilseeds during the rabi season.

A key reason for the paddy focus lies in the fact that the Telengana state government offered farmers a bonus of INR 500/quintal (100 kg) above the minimum support price (MSP). This bonus was part of the Congress government’s promise during the 2023 state Assembly elections. After coming to power, the state government specified the bonus for 33 fine paddy varieties. As a result, the state witnessed a record 15.35 mnt of paddy production during kharif and almost 13 mnt in the rabi seasons.

For the current agri marketing season of 2025-26, the bonus has been increased to INR 800/quintal on the MSP of INR 2,800/quintal for procurement of fine-grained paddy — which has been traditionally less cultivated in the state. “The bonus has taken the total realization for farmers from government procurement to INR 3,600/quintal, which is encouraging them to divert other crop areas to paddy,” said a source.

More labour hands available: In a chicken-and-egg scenario, the higher paddy cultivation is also encouraging a steady influx of migrant farm workers from Bihar, Uttar Pradesh and Maharashtra, during the sowing and harvesting season which is further facilitating farmers’ focus on paddy. Moreover, irrigation is comparatively less cumbersome as paddy fields need to be kept flooded instead of watered periodically as in other crops, say maize.

Challenges

However, experts warn that too much dependence on paddy has its pitfalls.

•  The bonus is only on the fine-grained paddy which has a lower nutritional value compared to the coarse variety.
• Fine paddy is prone to breakage and thus involves a higher loss/waste component.
• Higher paddy production is encouraging exports but which, many sociologists warn, has a socio-economic impact. Overseas sales mean exports of water and displacement of people and habitation through construction of dams and reservoirs.

Outlook

India’s total rice production (paddy) is expected to rise from about 149.2 mnt in 2024-25 to about 151 mnt in 2025-26. This is a small but significant increase with Telengana playing a pivotal role.