Telangana Mulls Rice Export Incentives to Manage 3 Crore Tonne Surplus, Says Minister

On Monday, Irrigation and Civil Supplies Minister N Uttam Kumar Reddy announced in Hyderabad that the Telangana government is considering a new policy to incentivize rice exports. Speaking at a local event, the Minister explained that the proposed policy aims to expand the state's reach in both global and inter-state markets. This move is designed to reduce Telangana's reliance on central procurement agencies while opening up better avenues for local farmers and rice millers through value addition and direct exports.

The announcement was made during the launch of KCP Nutri’s Multi-Vitamin Rice range in Hyderabad. Reddy highlighted that Telangana has transitioned into a massive rice-surplus state. Annual rice production in the state has crossed 3 crore tonnes, which far exceeds the local annual consumption of approximately 36 lakh tonnes. Furthermore, the combined procurement during the Kharif and Rabi seasons has surpassed 1.52 crore tonnes.

According to Reddy, the Food Corporation of India primarily procures rice to support farmers rather than for export purposes. This limitation makes it crucial for Telangana to independently explore and establish new domestic and international trade channels.

To support this transition, the Minister assured rice millers and businesses that adhere to prescribed quality standards of full government backing. He stated that the state government would actively facilitate approvals for genuine exporters to streamline the process.

Reddy also shared details of the state's recent procurement performance. He noted that Telangana successfully procured 81 lakh metric tonnes of paddy during the recently concluded Rabi season. This operation resulted in the direct transfer of Rs 19,303 crore into the bank accounts of local farmers.

Finally, the Minister urged the state's rice industry to prioritize innovation and value addition. He emphasized that developing fortified and nutrition-rich products, such as multi-vitamin rice, would enhance the state's competitiveness in both domestic and overseas markets while meeting evolving consumer preferences.