Evolution of Paddy Cultivation and Procurement System in Telangana: Trends, Challenges and Policy Implications

Abstract

Paddy cultivation has become the backbone of Telangana’s agricultural economy following unprecedented expansion in irrigation and the strengthening of the decentralized procurement framework. Since the formation of Telangana in 2014, large-scale irrigation projects such as the Kaleshwaram Lift Irrigation Project and Mission Kakatiya have transformed dryland agriculture into a high-input, high-productivity system dominated by paddy. The procurement of paddy through Minimum Support Price (MSP)-based Paddy Procurement Centres (PPCs) has reduced the involvement of middlemen and empowered local women’s groups, particularly Self-Help Groups (SHGs), PACS and DCMS. During the COVID-19 pandemic, the decentralized procurement model was stress-tested and proved robust by operationalizing 7,700 PPCs that ensured farm-gate procurement and timely payments through the Online Procurement Management System (OPMS). Despite significant successes, challenges persist relating to logistical delays, storage shortages, quality-grading disputes and procurement quotas. Recent seasons (2024–25) recorded record procurement levels exceeding 60.61 LMT in Rabi and a projected 80 LMT target for Kharif 2025–26, demonstrating major institutional progress. Ensuring sustainability requires policy strengthening through logistic infrastructure upgrades, warehouse expansion, SHG capacity building and integration of labour support via MGNREGS. Overall, Telangana offers a replicable model of farmer-centric MSP procurement that has strengthened rural livelihoods, empowered women and stabilized agricultural markets.