The Chief Minister's Office of Telangana announced on Thursday, 18 June 2026 that a cabinet meeting chaired by Chief Minister Revanth Reddy resolved to release Rythu Bharosa investment support funds to farmers for the vanakalam (kharif) season, and to hold a large-scale farmers' conclave in Madhira, Khammam district on 30 June 2026.

Context

Telangana farmers produced a record volume of paddy this season, the highest in the country according to the state government. The government has already procured close to 80 lakh metric tonnes of paddy this season — described as an unprecedented figure. The Rythu Bharosa scheme, which provides per-acre financial assistance to farmers, was originally introduced in Telangana in 2018 and has continued under the current Congress administration led by Revanth Reddy, who took office in December 2023.

Policy Backdrop

The cabinet meeting expressed concern that the central government is procuring less paddy from Telangana compared to other states, and formally urged the Food Corporation of India (FCI) and the Centre to purchase the entire paddy produced in the state. Ministers stated the government is ready to sell crop produce as per centrally prescribed norms, and called on the Centre to enhance the procurement quota for future seasons to avoid hardship to farmers.

On fertilisers, the meeting noted that the state has written to the Centre multiple times demanding immediate release of the vanakalam fertiliser quota. A delegation of ministers is set to travel to Delhi shortly to press the demand in person. The meeting also demanded that the majority of urea produced at the Ramagundam FCI plant in Telangana be allocated to the state itself, arguing that diverting it to Madhya Pradesh and Bihar increases transport costs unnecessarily.

On the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), the cabinet resolved to continue the existing law as-is, rejecting the Centre's proposed renaming and restructuring under the new VBG Ramji scheme. A ministerial sub-committee comprising Uttam Kumar Reddy, Tummala Nageswara Rao, Seethakka, and Vivek Venkataswamy was constituted to study the impact of the new framework on daily-wage workers and the state exchequer.

Stakeholders and Impact

The Rythu Bharosa release and the fine-paddy bonus directly benefit paddy farmers across Telangana, particularly those cultivating the seven notified fine-grain varieties. Rural wage workers stand to be affected by the government's stance on MGNREGA restructuring. The meeting also resolved to provide free RTC bus travel to all students appearing for the NEET examination on 21 June 2026, with nearly 2 lakh 95 thousand students registered across approximately 208 examination centres in the state.

On urban infrastructure, the cabinet urged the Centre to grant pending approvals for Hyderabad Metro Phase-2 expansion and to expedite the loan from IRFC (Indian Railway Finance Corporation) as agreed. The meeting specifically called on BJP MPs and Union ministers from Telangana to support the metro expansion project.

What's Next

All eyes are on the 30 June farmers' conclave at Madhira, where the Rythu Bharosa fund transfer is expected to be inaugurated publicly. The ministerial delegation's visit to Delhi for fertiliser quota negotiations will be a key test of centre-state relations on agriculture this season. The sub-committee on MGNREGA is expected to submit its findings before the state takes a final position on implementing — or formally opposing — the Centre's revised scheme. The Centre's response to Telangana's paddy procurement and Hyderabad Metro funding requests will shape the state's fiscal and infrastructure outlook heading into the next rabi season.