Telangana CID arrests rice millers over large-scale grain diversion

The Telangana Crime Investigation Department (CID) has launched a major investigation into alleged irregularities in rice deliveries to the Food Corporation of India (FCI) during the Kharif 2025–26 season. Following a complaint from the Telangana State Civil Supplies Corporation, authorities have arrested at least 14 rice millers for allegedly diverting premium ‘Sanna Rakam’ (fine variety) paddy to the open market.

Investigators report that millers substituted the fine variety with cheaper, coarse ‘Doddu Rakam’ rice, some of which was reportedly sourced from outside the state. In districts including Nizamabad, Karimnagar, and Mulugu, 16 mills allegedly delivered over 3,385 metric tonnes of coarse rice against fine-variety allotments. While immediate interventions by civil supplies authorities prevented further losses, the substitution has already caused an estimated loss of approximately ₹1.69 crore in bonuses, with a potential financial implication of up to ₹242 crore for other allocated quantities.

The CID is investigating potential violations of the Custom Milled Rice (CMR) agreement, criminal breach of trust, and conspiracy to cause wrongful loss to the government exchequer. The probe is ongoing to determine the full extent of the diversion and the involvement of other individuals.