Telangana has successfully exported its first consignment of rice to the Philippines, marking a significant step in tapping global markets for the state’s surplus paddy. Irrigation and Civil Supplies Minister Capt N Uttam Kumar Reddy made the announcement on Monday, highlighting the state’s efforts to boost agricultural exports.
According to an official statement from the Telangana government, the agreement specifies that the exported rice is of the IR64/MTU1010 variety, with 5% broken, well-milled, polished, and Sortex quality. The rice also meets strict quality parameters, including minimal foreign matter, low moisture content (up to 14%), and limited damaged, discoloured, and red grains.
Speaking to the media after flagging off the shipment at Kakinada Port, Uttam Kumar Reddy revealed that 12,500 metric tons of rice had been dispatched earlier in the day.
“This is a significant moment for Telangana’s farmers and our agriculture sector,” he said.
The Minister emphasized that Telangana has emerged as a major paddy-producing state due to its favourable soil, climatic conditions, and proactive support from the Congress-led state government.
“This year, the annual paddy production was about 280 lakh metric tonnes (LMTs), and we often produce far more than what is required for the state and central pool,” he added.
Export Strategy to Ease Financial Burden
The Telangana government has been incurring heavy expenditure on paddy procurement and related costs, with delays in receiving payments from the Government of India and the Food Corporation of India (FCI) further adding to financial pressure.
“Due to undue delays in receiving the cost of Custom Milled Rice (CMR) from the Government of India and the FCI, we are facing a serious financial burden in the form of interest payments,” said Uttam Kumar Reddy.
To address this issue, the state government explored export options to offload surplus rice and found an opportunity with the Philippines, which conducted a thorough assessment of rice samples from Telangana before expressing interest in imports.
“After examining the quality, the Philippines government proposed to initially purchase 1 LMT of rice and 8 LMTs of paddy from Telangana. Based on this, an MoU was signed, and a formal agreement was reached between The Telangana State Civil Supplies Corporation Limited (TGSCSCL) and Planters Products Inc., representing the Philippines government,” he explained.
The export rate was finalized at ₹36,000 per metric tonne, ex-Kakinada Port.
Participation of Local Rice Mills
A total of 103 rice mills in Telangana participated in milling the MSP paddy for this export.
“This is just the beginning. We are confident that Telangana rice will soon gain a strong foothold in international markets,” said Uttam Kumar Reddy.
The Minister congratulated farmers, rice millers, and officials of the Civil Supplies Corporation for their role in this achievement and assured that the government would continue supporting initiatives that enhance farmer incomes and reduce the state’s financial burden.