NALGONDA: Amid concerns over El Nino, farmers in the district who took the risk of cultivating paddy despite warnings from district authorities are witnessing better-than-expected returns this Kharif season, with millers and traders rushing to buy their produce at prices higher than the MSP fixed by the government. Private buyers are purchasing paddy despite its high moisture content, chaff and other impurities.
The government has fixed the minimum support price (MSP) at Rs 2,441 per quintal for common paddy and Rs 2,461 for A-grade paddy, along with a Rs 500 bonus for fine varieties. However, private market prices have exceeded these rates, bringing relief to farmers. Traders and rice millers are purchasing wet coarse paddy directly from fields at Rs 2,400-Rs 2,600 per quintal, while fine paddy is fetching Rs 3,200-Rs 3,300 per quintal.
B Ranga Reddy, a farmer from Guttakindi Annaram village in Nalgonda mandal, said he harvested 104 quintals of coarse and fine paddy from three acres and sold the fine variety for Rs 3,300 and the coarse variety for Rs 2,400 per quintal. He said buyers issued receipts promising direct bank transfers within 20 days. Unlike government procurement, which generally requires grain to be dry and free of impurities, private buyers are purchasing wet paddy directly from the fields, saving farmers the cost and effort of drying, cleaning and transporting the produce.
In neighbouring Yadadri Bhuvanagiri district, paddy was cultivated on about 2.26 lakh acres, including 38,000 acres of fine varieties, with the remaining area under coarse varieties. With harvesting progressing rapidly, demand for paddy in the open market has surged, prompting millers and traders to adopt new ways to attract farmers. Some millers have put up banners offering Rs 2,500 per quintal, while others have created WhatsApp groups to share daily purchase prices for different varieties.
V Shekhar of Mothkur mandal said millers were even putting up flex banners near the fields of high-yielding farmers to advertise their purchase rates. A farmer from Kesarajapalli said agents from Tamil Nadu visited several villages in Nalgonda mandal on Friday and offered Rs 100 more per quintal than prevailing local rates to procure 10 truckloads of coarse and fine paddy.
The intense competition is also reportedly linked to scrutiny of rice mills over alleged discrepancies in government grain stocks. Following complaints that some millers had allegedly sold government grain meant for custom milling instead of returning it to the Civil Supplies Department or the FCI, Civil Supplies and Vigilance officials conducted inspections and began registering cases after finding discrepancies between physical stocks and official records. According to allegations, some millers sold fine rice in the open market at higher prices and are now purchasing coarse paddy to replace the stock and meet government delivery requirements. The inspections and potential legal action have reportedly prompted millers to aggressively procure paddy from the open market, pushing up prices.
Of the total cultivable area of 11,23,750 acres in the district, crops were cultivated on 9,92,040 acres during the Kharif season. Fine-variety paddy was grown on 1,79,341 acres and coarse-variety paddy on 2,40,000 acres, while the remaining area was cultivated with cotton, red gram and green gram.