# Telangana rice supply and distribution irregularities

> Developing situation record from CLSTR: https://clstr.news/situations/telangana-rice-supply-and-distribution-irregularities
> Updated: 2026-11-05T03:47:27.000Z. Sources: 12. Developments: 4.

Authorities in Telangana have launched investigations into multiple schemes involving the diversion and manipulation of rice supplies. 

The Telangana Crime Investigation Department (CID) began investigating irregularities in deliveries to the Food Corporation of India during the Kharif 2025–26 season. At least 14 rice millers were arrested for allegedly substituting premium ‘Sanna Rakam’ paddy with cheaper, coarse ‘Doddu Rakam’ rice. This substitution, involving over 3,385 metric tonnes of coarse rice across several districts, resulted in an estimated loss of ₹1.69 crore in bonuses, with potential total implications reaching ₹242 crore. 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.

Concurrently, the Telangana Civil Supplies Department conducted raids in Hyderabad, including the Karmanghat area, targeting retail and wholesale dealers. Officials investigated allegations of hoarding, price manipulation, and tax evasion. The investigation uncovered a potential scam where rice intended for the subsidized Public Distribution System (PDS) was allegedly polished, repackaged under various brands, and sold in the open market. Authorities also identified instances of weight misdeclaration, such as bags labeled as 26kg containing only 25kg, and the use of unverified weighing scales. 

Recent enforcement actions have expanded to include the seizure of 150 quintals of PDS rice at Raghavendra Rice Mill in Rangareddy, where officials allege ration rice was being repackaged under 20 different brands. Additionally, a police complaint was filed against Sreeja Rice Mill in Kothagudem, alleging the misappropriation of government paddy worth ₹6.91 crore, with more than 1,750 metric tonnes reported missing.

## Timeline

### 2026-11-05: Telangana officials seize rice and report missing paddy in separate raids

Telangana authorities have seized 150 quintals of PDS rice in Rangareddy and filed a complaint alleging the theft of 1,750 metric tonnes of government paddy in Kothagudem.

3 sources. https://clstr.news/cluster/telangana-officials-seize-rice-and-report-missing-paddy-in-separate-raids

### 2026-10-30: Telangana Minister warns against illegal rice hoarding and price hikes

Telangana Minister Uttam Kumar Reddy warned traders against illegal rice hoarding, setting a 66 rupee cap on BPT rice and deploying joint enforcement teams to prevent price manipulation.

2 sources. https://clstr.news/cluster/telangana-minister-warns-against-illegal-rice-hoarding-and-price-hikes

### 2026-10-29: Telangana officials raid rice dealers in Hyderabad over hoarding and scams

Telangana authorities raided rice dealers in Hyderabad following reports of hoarding, tax evasion, and a scam involving the illegal sale of subsidized PDS rice under private brands.

4 sources. https://clstr.news/cluster/telangana-officials-raid-rice-dealers-in-hyderabad-over-hoarding-and-scams

### 2026-10-25: Telangana CID arrests rice millers over large-scale grain diversion

Telangana's CID has arrested multiple rice millers for allegedly substituting premium fine-variety rice with cheaper coarse varieties intended for the Food Corporation of India.

8 sources. https://clstr.news/cluster/telangana-authorities-investigate-large-scale-rice-diversion-racket

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Cite as: Telangana rice supply and distribution irregularities. CLSTR, https://clstr.news/situations/telangana-rice-supply-and-distribution-irregularities