Shortage of paddy in the market and rising prices have driven traders, millers, and retailers. They are vying for paddy procurement now. The average price of paddy per quintal ranges from Rs 2,300 to Rs 2,500. Now, it is likely to go up to Rs 5,000 even if the trend continues as the paddy cultivation area was reduced this season owing to restrictions by the Central government.
There was a sudden spurt in demand for paddy both in domestic and international markets. To discourage further shortage of paddy in the country, the Central government has imposed an export tax of 20 per cent. The extent of cultivation of paddy had come down by 50 lakh acres due to a variety of reasons including the weather conditions.
Many traders who expected the demand had even given advance to the farmers and are ready to procure the paddy even if it had 30 per cent moisture. If the moisture is around 17 per cent, the farmers would get a good price. The Grade I variety of paddy is presently commanding Rs 2,060 while the ordinary variety is commanding Rs 2,040. Compared to the previous year, there was an increase of Rs 1,500 per quintal. Right now, there is an increase of Rs 400 per quintal.
In Telangana, paddy was cultivated to an extent of 64.54 lakh acres. There is a huge demand for BPT, Ganga Kaveri, and RNR varieties across the district. The millers from Andhra Pradesh, Maharashtra, and Karnataka are thronging the markets in Telangana to grab as much as they can from the farmers here. According to an estimate, nearly 20 lakh tonnes of super fine paddy from Telangana is being bought by millers of various states.
By Gollapudi Srinivasa Rao