Telangana sets record with 5 mnt rabi paddy procurement; MSP payments cross Rs 8,749 crore

• Officials target up to 7.0-7.5 mnt including late arrivals
• Nearly 85% of total arrivals covered by MSP procurement

Telangana has achieved a major milestone in its ongoing rabi 2025-26 paddy procurement season, purchasing 5 million tonnes (mnt) of paddy so far, supported by large-scale procurement infrastructure and accelerated payments to farmers. The state is now on track for one of its strongest procurement seasons, with officials targeting up to 7.0-7.5 mnt if late arrivals are fully covered.

Large procurement network supports farmer arrivals

To manage the large inflow, the state has deployed 8,575 paddy procurement centres (PPCs) and mobilised over 12,900 vehicles for grain transportation. Procurement has reportedly covered nearly 85% of total arrivals, reflecting strong operational progress despite logistical challenges. The large-scale procurement effort follows a robust rabi cultivation area of 6.5 million acres, highlighting Telangana’s continued expansion as one of India’s leading paddy-producing states.

MSP payments provide liquidity support to farmers

The Telangana government has released Rs 8,749.82 crore in Minimum Support Price (MSP) payments so far, accounting for nearly 73% of total payment obligations, with direct transfers helping improve farmer liquidity during the marketing season. Authorities have reportedly increased payment processing frequency to accelerate settlement of pending dues. Timely procurement and faster payments remain critical, particularly as many farmers depend on these receipts for kharif season input purchases.

Operational challenges persist

Despite the strong procurement pace, the state has faced several operational bottlenecks, including labour shortages, extreme heat conditions, and unseasonal rainfall, which have slowed lifting and storage movement in some districts. Reports suggest some districts continue to face pending stock accumulation, requiring faster clearance in the coming days.

Outlook

Telangana’s record rabi procurement underscores the state’s growing importance in India’s rice supply chain. If pending arrivals and stock movement are managed efficiently, total procurement could move significantly higher, supporting both farmer incomes and central foodgrain availability ahead of the next marketing cycle.