Telangana to establish silo network to protect farmers from loss

Hyderabad: The Telangana government is planning to establish a major network of scientific silos to protect farmers from distress sales and post-harvest losses, Minister N Uttam Kumar Reddy said on Saturday, November 7.

At a review meeting, the minister discussed two proposed models for setting up the storage infrastructure, according to a press release.

Under the first model, the Telangana State Civil Supplies Corporation (TSCSC) would directly establish silos on a large scale by mobilising loans from reputed financial institutions. Under the second, modern storage facilities would be created through private sector participation, the release said.

A silo is primarily a large vertical or horizontal structure designed to store bulk materials like grain, silage, cement, coal, and chemicals.

The government would initially encourage private entrepreneurs to establish silo facilities at around 20 locations across the state, with the Civil Supplies Corporation providing rental guarantees to make the investments financially viable, it said.

The initiative aims to modernise grain storage, preserve the quality of produce and help farmers secure better returns from premium paddy varieties.

It is also intended to prevent post-harvest losses and protect cultivators from distress sales by enabling them to store their produce and sell it when market conditions are favourable, the state minister for Irrigation and Civil Supplies said.

The minister directed officials to finalise the proposals expeditiously, including their financial implications, funding arrangements and rental commitments.

Explaining the need for the proposed infrastructure, he said farmers cultivating premium paddy varieties in Telangana were unable to realise the full value of their produce due to inadequate scientific storage facilities.

Freshly harvested paddy generally contains around 25 per cent moisture, making it difficult for farmers to store the produce safely without proper drying, he said.

Consequently, many farmers are forced to sell their harvest immediately, sometimes within 24 hours of harvesting, irrespective of prevailing market prices.

The proposed silo network would provide scientific drying and storage facilities, enabling farmers to preserve their produce for longer periods and sell it when market conditions are favourable, he said.

Uttam Kumar Reddy said Telangana had emerged as one of the country’s leading paddy-producing states, with several locally cultivated varieties gaining recognition in premium rice markets, including overseas markets.

Paddy is the single largest crop cultivated in Telangana during both the Kharif and Rabi seasons, he said, adding that strengthening storage infrastructure and improving farmers’ returns from their produce would contribute significantly to agricultural growth and the state’s GDP.

The initiative would also support Telangana’s ambition of becoming a USD 3-trillion economy, he added.

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