Telangana plans grain silos so paddy farmers need not sell in a hurry

The Telangana government is planning a network of modern silos with drying facilities so that paddy farmers can store their harvest and sell when prices are good, instead of selling in a hurry at low rates. Civil Supplies Minister N. Uttam Kumar Reddy announced the plan on Saturday, 7 November.

The problem the plan targets is moisture. Freshly harvested paddy holds about 25% moisture and spoils quickly, so most farmers sell within a day of harvest, often below what their crop is worth. Dried scientifically to about 12% moisture, it can be stored safely. Premium varieties that now fetch ₹3,500 to ₹4,500 a quintal could then command ₹5,000 to ₹5,500, according to figures presented at the meeting.

Mr. Reddy asked officials to present two models, one of them with private sector participation, and to finalise proposals with their costs and rental commitments. The silos would complement the existing government procurement system, not replace it.

The background

The idea dates to June, when the State proposed silos at 20 locations with a combined capacity of 50,000 tonnes in the first phase. Storage has become a pressing problem as Telangana’s paddy output has grown with expanded irrigation. In the 2025-26 kharif season the State sought to procure a record 80 lakh tonnes of paddy, and the Minister spoke then of an immediate storage crisis. The government also pays farmers a bonus of ₹500 a quintal for fine varieties, which has encouraged more farmers to grow them.

What’s next

No timeline or budget has been set. Officials are to come back with detailed proposals, including the cost of building the silos and the rent the government would pay to private operators.