KCR to take up paddy levy issue with Modi

Telangana faces severe shortage of storage space

The delay in the Centre’s response to the Telangana government’s request for retaining the existing paddy levy percentage at 75 instead of reducing it to 25 from the coming procurement season is likely to compound the problems for the State-level procurement agencies and create a huge shortage of storage space.

As there has been no response from the Ministry of Food to the letters addressed separately by the Chief Secretary and Secretary, Civil Supplies, over a month ago, Chief Minister K. Chandrasekhar Rao has decided to take up the matter with Prime Minister Narendra Modi and Union Minister for Food and Public Distribution Ram Vilas Paswan.

Official sources told

The Hindu on Sunday that a file has already been sent to the Chief Minister’s office and the Chief Minister is likely to address letters to the Prime Minister and Union Minister for Food in a couple of days. The letters would carry a specific request to keep the paddy levy at 50 per cent if not 75 per cent as reducing it to 25 per cent would spell trouble for the State government immediately in terms of ensuring minimum support price and storing the procured foodgrain.

As it is, the shortage of storage space for paddy alone in Telangana is huge at 20 lakh tonnes for an agricultural year as the existing godown space available in the private sector, State government agencies and Central agencies such as Food Corporation of India (FCI) is about 50 lakh tonnes.

However, the storage space available with the State Government is only 11.3 per cent of the total 5.55 lakh tonnes in Telangana, excluding the Central agencies.

Huge outlay required

The joint initiative of the Rural Development, Marketing and Civil Supplies Departments to construct godowns for 2.5 lakh tonnes storage capacity with 500 tonnes each for 500 IKP procurement centres is yet to take off as an estimated Rs. 200 crore is required for the purpose. “Poor monsoon and delayed transplantation this season may limit the paddy procurement by government agencies at about 15 lakh tonnes. If not in this Kharif Marketing Season (KMS), heavy shortage of storage space can pose serious problems in Rabi,” a senior officer said. The procurement is likely to commence in October first week.