HYDERABAD: Though successive governments have been urging farmers not to restrict themselves to paddy cultivation but to adopt crop diversification, paddy remains the most preferred and profitable crop in Telangana.
According to the “Price Policy for Kharif Crops: The Marketing Season 2026–27” report submitted by the Commission for Agricultural Costs and Prices (CACP) to the Union government, paddy emerged as the most profitable crop for Telangana farmers when compared to other mandated Kharif crops.
During the 2025–26 Kharif season, paddy was cultivated in 67.57 lakh acres in the state, yielding about 148 lakh tonnes of produce. The state remained one of the top paddy producing states in the country. As per the report, between 2022–23 and 2024–25, Telangana’s share in paddy procured in the country was 13.6 per cent, which is the second highest behind Punjab’s 22 per cent.
Telangana farmers preferred paddy cultivation despite high cultivation cost. Among the major crops, paddy production cost was the second highest at Rs 1,15,673 per hectare, behind cotton’s Rs 1,19,582 per hectare. The cost of maize production was Rs 1,09,895 per hectare.
Between 2023–24 and 2024–25, the maize production cost increased 5.4 per cent, that of soyabean by 4.3 per cent, paddy by 3.8 per cent and cotton by 3 per cent.
According to the report, the fertiliser consumption in four districts — Mahbubnagar, Jayashankar Bhupalpally, Jogulamba Gadwal and Bhadradri Kothagudem — is between 300 kg and 500 kg per hectare, which is considered the highest in the country. In 12 districts, the consumption is between 200 kg and 300 kg per hectare, in 14 districts, it is between 100 kg and 200 kg per hectare and in three districts below 50 kg per hectare.
The production cost of tur (pigeon pea) in the state is Rs 6,082 per quintal, which is highest in the country. While paddy, cotton, tur and soyabean cost of production in Telangana was higher than the CACP projections, that of maize and oilseeds is lower than the CACP estimates.
The report also contained recommendations on Minimum Support Price (MSP) for 13 Kharif crops, which were accepted by the Union Cabinet recently. Before recommending MSPs, the CACP has sought projections and suggestions from all the states with Telangana suggesting Rs 4,403 per quintal MSP for paddy, Rs 2,864 per quintal for maize, Rs 12,848 per quintal for tur, Rs 9,607 per quintal for groundnut, Rs 9,844 for soyabean and Rs 12,784 per quintal for cotton.