The Telangana Crime Investigation Department (CID) has arrested 14 rice millers after registering three cases over diversion of fine variety (Sanna Rakam) paddy and substitution of the rice supplied to the Food Corporation of India (FCI) during the Kharif 2025-26 season.

The investigation was taken up following a complaint by the General Manager (Procurement) of the Telangana Civil Supplies Corporation on October 24. According to the CID, certain millers allegedly diverted Sanna Rakam paddy to the open market and supplied cheaper coarse rice, including rice allegedly sourced from outside Telangana, in its place.

The government had procured 71.86 lakh metric tonnes of paddy during Kharif 2025-26 against a target of 59.60 lakh metric tonnes of rice for delivery to the FCI.

Inspections by Enforcement and Task Force teams, followed by laboratory analysis, reportedly found that rice samples supplied in the cases examined did not conform to the Sanna Rakam variety specified in the allotments. The alleged substitution raised concerns over violations of the Custom Milled Rice agreement and financial loss to the government, the CID said in a statement.

In Nizamabad, Karimnagar and Mulugu districts, 16 rice mills reportedly delivered 3,385.820 metric tonnes of Coarse variety (Doddu Rakam) rice against Sanna Rakam allotments. The estimated bonus-related loss from these deliveries was around ₹1.69 crore.

The CID said another 45,414.833 metric tonnes had been allocated for conversion, involving a potential bonus-related financial implication of around ₹242 crore. However, timely intervention by Civil Supplies authorities and stoppage orders prevented further potential loss, according to the department.

The investigation is now focused on establishing the alleged diversion and substitution of rice varieties, the role of the millers, how allotments and conversion requests were processed, and the actual financial loss. The CID is also examining whether officials or other persons were involved and whether the evidence supports charges of criminal conspiracy or other offences. Further investigation is underway.

After farmers decried long delays in procurement of food grains harvested by them in the recently concluded Yasangi (Rabi), the Civil Supplies department launched an action plan titled ‘MISSION K-100’ on Wednesday, to resolve logistical and financial bottlenecks before the kharif harvest arrives at grain procurement centres. It is designed to accelerate stock clearance and improve coordination among all stakeholders.

Marking the launch, the department’s Commissioner M. Stephen Raveendra chaired a high-level strategic coordination meeting with Food Corporation of India (FCI) General Manager G.N. Raju in Hyderabad. The Commissioner requested the FCI to urgently allocate adequate storage space to facilitate the swift evacuation of pending grain stocks. Additionally, the State officials pressed the Central agency for the release of long-pending financial dues to strengthen the department’s working capital, as per a press note.

The action plan includes five sub-missions aimed at addressing various bottlenecks involved in taking paddy from procurement centres to rice mills, space in godowns and iron out financial issues. 

After harvest, farmers bring food grains to Paddy Procurement Centres (PPC). Hamalis (workers) pack the food grains in gunny bags, weigh and load them onto heavy vehicles. The bags are taken to rice mills where the harvest is sold. There were gaps in this supply chain in yasangi. 

The five sub-missions

The first of the five pillars of MISSION K-100 focuses on rapidly milling and moving pending Custom Milled Rice (CMR) to the FCI to clear storage space ahead of the new harvest.

The second mission is to phase wise auction of paddy by centres to generate cash flow and reduce warehouse rental costs.

The third sub-mission aims at recovery of pending subsidies, incidental costs, and get withheld funds from the Central government.

The fourth is to target modernisation of high-volume procurement centres by deploying automated equipment to cut down on dependency on manual labour.

The final sub-mission is to overhaul logistics by expanding transport sectors, increasing the required vehicle fleet, and implement a real-time Vehicle Location Tracking System (VLTS) to eliminate transit bottlenecks between procurement centres and participating rice mills.