HYDERABAD: Despite Congress being the ruling party in both states, the deal for supply of rice from Telangana to Karnataka has hit a “price block”. Though chief minister A Revanth Reddy-led government offered to sell nearly 2.50 lakh metric tonnes of rice or paddy per month to Karnataka for its Anna Bhagya Scheme, the price quoted by Siddaramaiah government was too less.

Telangana government, which is looking at every possible source for raising revenues to implement its six guarantees, is presently in no mood to sell the rice at a lower cost. Also, Karnataka government asked Telangana to bear the transportation cost, price of gunny bags and expenditure on wastage. The Telangana government did not agree to it.

Food Corporation of India buys rice from Telangana at nearly 39 per kg if stocks are in tune with the quality prescribed by it. The price includes milling charges, transportation, gunny bags and interest paid by Civil Supplies Corporation on loans it had obtained from banks to procure paddy from farmers.

The previous BRS government had paid 2,140 per quintal and procured about 66 lakh metric tonnes of paddy from the farmers. Though KCR government had invited tenders, millers formed a syndicate and quoted 1,700 and even lesser rice per quintal, stating the paddy was damaged due to rains as it was stored outside the mills due to lack of storage space.

Sources in the civil supplies department told TOI that Siddaramaiah government was now carrying out a survey to check whether people would prefer rice or cash. Karnataka was denied rice supplies for its Anna Bhagya scheme by the central government following which they started depositing money into bank accounts of beneficiaries at 34 per kg.

“Depending upon the survey result and mood of the beneficiaries, Karnataka government will take a decision to continue with its direct cash transfer scheme or start supplying rice. Until then, the rice deal with Karnataka will not take place,” the source added.

Now, Telangana government has decided to sell yasangi rice and paddy stocks of almost 35 lakh metric tonnes by Inviting tenders. Chief secretary A Santhi Kumari has constituted a high-level committee to fix modalities and minimum price keeping in view the damaged paddy stocks too.

Published Date: January 28, 2024