Telangana is planning 20 scientific silo facilities across the state to reduce post-harvest paddy losses, improve grain quality and give farmers more time to sell their produce at better prices. The proposal was reviewed by Irrigation and Civil Supplies Minister N Uttam Kumar Reddy at a meeting in the state Secretariat on Saturday.
The planned Telangana silos are intended to provide scientific drying and storage facilities for paddy, particularly premium varieties cultivated in the state. The government is considering two models for developing the network: direct construction by the Telangana State Civil Supplies Corporation (TSCSC) using loans from financial institutions, or facilities created through private-sector participation.
Under the private-sector model, entrepreneurs would be encouraged to establish silo facilities at about 20 locations to be identified across Telangana. The TSCSC would provide a rental guarantee to make the projects financially viable, according to the proposal discussed at the meeting. The government is also examining the financial implications, financing arrangements and the level of rental commitments required for the model.
Reddy directed officials to finalise the proposals quickly and explore the possibility of securing institutional finance at competitive interest rates. The discussions place the civil supplies corporation at the centre of the proposed system, either as the direct developer of the infrastructure or as an anchor user providing rental support to private operators.
The need for the facilities is linked to the moisture content of freshly harvested paddy. The minister said newly harvested grain generally contains about 25% moisture, making it difficult for farmers to store safely using conventional methods. As a result, some cultivators are compelled to sell their harvest immediately, sometimes within 24 hours, even when market prices are not favourable.
According to the figures cited at the meeting, premium paddy varieties with moisture content of around 25% currently fetch about Rs 3,500 to Rs 4,500 per quintal. After scientific drying reduces moisture to approximately 12%, the same produce could command between Rs 5,000 and Rs 5,500 per quintal. The proposed system would allow farmers to dry and preserve the grain instead of selling immediately after harvest.
The government’s proposal is also aimed at protecting the quality and market value of varieties such as JSR, RNR and HMT. Reddy said Telangana had emerged as one of India’s leading paddy-producing states and that some locally cultivated varieties were gaining recognition in premium rice markets, including overseas markets. He cited JSR rice as an example of a Telangana variety fetching a higher price in certain markets than basmati rice.
The proposed silo network would therefore connect farm-level storage with the state’s wider civil supplies and grain-marketing infrastructure. Its immediate operating model, location-wise capacity, project cost and implementation timeline have not yet been finalised in the information available from the ministerial review. The next step is for the government to complete the financial and financing proposals, including the rental guarantees that may support private investment.
