Telangana Government to build silo storage infrastructure to protect farmers from losses

The Telangana government is planning to develop modern storage infrastructure to protect the state's farmers from post-harvest losses and the problem of being forced to sell at low prices. For this purpose, the government is focusing on the construction of silos, in which private sector partnership will also be taken if necessary.

Telangana's Irrigation and Civil Supplies Minister N. Uttam Kumar Reddy held a meeting with officials in Hyderabad on Saturday to review paddy procurement and discuss two proposed models for establishing silo infrastructure. The Minister stated that the creation of a scientific silo network would prove to be a crucial long-term step in protecting the interests of paddy farmers.

Minister N. Uttam Kumar Reddy explained that two models have been considered for this scheme. Under the first model, the Telangana State Civil Supplies Corporation (TSCSC) will establish large-scale silos directly by obtaining loans from reputed financial institutions. In the second model, modern storage capacity will be created through private sector partnership.

The Minister further stated that the government will initially encourage private entrepreneurs to establish silo facilities at approximately 20 identified locations across the state. To make this investment financially viable, a rental guarantee will be provided by the Civil Supplies Corporation.

This new arrangement will maintain crop quality and help farmers obtain better returns from premium paddy varieties. This initiative will prevent losses occurring in post-harvest storage and provide farmers with the ability to wait for favourable market prices, so they are not forced to sell cheaply.

The Minister has instructed officials to quickly complete proposals, including financial implications, financing arrangements, and rental commitments. He asked them to explore possibilities of obtaining institutional funds at competitive interest rates.

N. Uttam Kumar Reddy pointed out that due to the lack of scientific storage facilities, farmers growing premium paddy do not receive the full value of their produce. Generally, newly harvested paddy contains about 25% moisture, making it difficult for farmers to store the produce safely. Consequently, many farmers are forced to sell the crop within 24 hours regardless of market prices. The proposed silo system will provide facilities for scientific drying and storage.

The Minister gave an example that when the moisture content is 25%, the prices of premium paddy varieties are approximately ₹3,500 to ₹4,500 per quintal. However, if the moisture content is reduced to 12% through scientific drying, the price of the same produce can increase to ₹5,000 to ₹5,500 per quintal.

He noted that Telangana has become one of the leading paddy-producing states in the country. Locally grown varieties such as JSR, RNR, and HMT are gaining recognition in premium rice markets, especially abroad. Giving the example of JSR rice, he said that in some markets, JSR rice is fetching higher prices compared to Basmati rice. According to a report by The Hindu, this entire planning has been done to increase farmers' income.