Hyderabad: Better irrigation facilities, free power and minimum support price (MSP) have transformed paddy into the best bet for farmers in Telangana, with the state expecting a harvest of over 148 lakh metric tonnes (LMT) in the Rabi season despite the government’s procurement target of 90 LMT.This trend is not confined to this year alone. Telangana emerged as the top rice producer in 2023-24 with an output of 168.75 LMT, though the government procured only around 40-50 per cent of total paddy output at the minimum support price (MSP). Since the state’s formation, paddy production has nearly doubled within six years. Over the past decade, the area under paddy cultivation has increased from 39,89,506 acres to 64,11,121 acres, triggering concerns of a gradual shift towards the worrying trend of mono-cropping. In comparison, maize is cultivated over 14,99,027 acres, followed by jowar and bengal gram, while other crops occupy less than one lakh acres each. Experts, however, flagged concerns over the pace of transition towards monoculture and its ecological impact. They noted that a promise to extend MSP to other crops, made in the election manifesto, remains unfulfilled. Concerns were raised over water-intensive paddy cultivation in unsuitable agro-ecological zones and its effect on soil health. In a letter to the Chief Minister, Dr D. Narasimha Reddy, a public policy expert, said farmers were caught in a “monoculture spiral”, with paddy dominating irrigated areas and cotton in dryland regions, leading to groundwater depletion, soil degradation and rising indebtedness. “Soils are losing organic carbon, soil biota, and structural integrity under continuous monoculture and chemical loading. Beneficial species – the soil organisms, the pollinators, the natural insect predators – that make diverse cropping systems resilient are being eliminated,” he said. During an informal media interaction, Chief Minister Revanth Reddy urged farmers to move away from paddy monoculture and adopt commercial and demand-driven crops. The proposal includes an incentive of `10,000 per acre for farmers shifting from paddy to alternatives such as pulses, on the lines of similar models in Punjab. The government is promoting crops including pulses, millets, oilseeds, vegetables and cotton, with plans to facilitate export opportunities to ensure better returns. A committee led by the agriculture minister and experts has been constituted to guide policy formulation. It has also proposed replicating the ‘Ankapur model’ of diversified and profitable farming across 12,728 gram panchayats. Dr Narasimha Reddy recommended that the state government declare remunerative base prices for crops lacking effective market support and study crop diversification models in Karnataka and Odisha. “The national MSP exists on paper for 23 crops, but is operationally guaranteed only for paddy and wheat through FCI procurement. For turmeric, castor, groundnut, pulses, millets, and vegetables, market prices at harvest routinely collapse without any state backstop. The farmer who grows these crops is fully exposed to market risk. The farmer who grows paddy is not. This is the root cause of monoculture, and it can be directly addressed by the state,” he said. S. Anvesh Reddy, chairman of the Telangana State Seed Development Corporation, said horticulture crops were emerging as profitable and sustainable options. He said vegetables offered quicker returns and strong market demand. “Vegetables cultivated through organic and natural farming methods are widely accepted by consumers,” he said.Ankapur of Armoor mandal in Nizamabad district stands out in its use of irrigation. It is recognised as a model village by the ICAR, Icrisat and the International Rice Research Institute (IRRI) due to the use of modern farming techniques. Almost every farmer in Ankapur uses a drip system. Farmers harvest four crops in a year, compared to a maximum of three elsewhere. Drought conditions have little bearing on normal life in the village of 6,000 people.Telangana rice exports surge Hyderabad: Higher production of paddy in Telangana and the refusal of the Food Corporation of India (FCI) to acquire the entire stock at MSP have forced the Telangana government to don a new role of an exporter. To export surplus paddy stock, the state government has signed a government-to-government (G2G) agreement with the Philippines to export rice.According to the Indian Rice Exporters Association, the first consignment of 22,750 metric tonnes has been dispatched, generating about Rs 81.9 crore. The deal secured a price of `3,600 per quintal, higher than prevailing domestic rates. Comparable rice was selling at around `3,000 per quintal in Andhra Pradesh and between `1,800 and `1,900 per quintal in Chhattisgarh. Telangana, one of the largest paddy-producing states, recorded production of around 280 LMT this year. During the Kharif season, the State procured a record 72 LMT from farmers at the minimum support price (MSP). However, the Food Corporation of India agreed to lift only about 54 LMT, leaving an estimated surplus of 86 LMT in state warehouses. The accumulation increased storage costs and logistical pressure on the exchequer. To manage the surplus, the state government adopted a direct export model under the G2G framework. Exports to the Philippines are planned to reach one lakh metric tonnes, with the first shipment completed. Officials said the model ensured MSP procurement for farmers, reduced storage burden, improved revenue realisation, and enhanced the State’s presence in international markets. “Experts note that this approach also highlights the growing importance of government-to-government trade in agriculture, where institutional support ensures quality standards, reliability, and consistent delivery — advantages that private exporters may not always guarantee at scale,” the association report said.
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