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Hyderabad, October 25, 2026 (Yes Punjab News)
The Telangana Crime Investigation Department (CID) has arrested 14 rice millers in connection with alleged irregularities in the supply of fine-variety rice to the Food Corporation of India (FCI) during the 2025-26 Kharif season.
The investigation was initiated following a complaint filed on October 24 by the General Manager (Procurement) of the Telangana Civil Supplies Corporation, the CID said on Sunday.
According to the agency, the state procured 71.86 lakh tonnes of paddy during the season against a target of 59.60 lakh tonnes of rice for delivery to the FCI. Preliminary findings suggest that some millers allegedly diverted the allotted Sanna Rakam (fine-variety) paddy to the open market and supplied cheaper Doddu Rakam (coarse-variety) rice instead, including rice allegedly sourced from outside Telangana.
Inspections by Enforcement and Task Force teams, followed by laboratory analysis, reportedly found that samples from the deliveries examined did not match the fine-rice variety specified in the allotments.
The CID said 16 mills in Nizamabad, Karimnagar and Mulugu districts had allegedly delivered 3,385.820 tonnes of coarse rice against fine-variety allocations. The estimated bonus-related loss associated with these deliveries was approximately ₹1.69 crore.
A further 45,414.833 tonnes had reportedly been allocated for conversion, carrying a potential bonus-related financial implication of around ₹242 crore. The agency said timely intervention by Civil Supplies authorities and stoppage orders prevented further potential losses.
The alleged substitution may constitute violations of the Custom Milled Rice agreement for the 2025-26 Kharif Marketing Season, along with possible criminal breach of trust and conspiracy to cause financial loss to the state, the CID said.
Three criminal cases have been registered, and 14 millers have been arrested.
The investigation is continuing to establish the alleged diversion and substitution, determine the actual financial loss and examine how allotments and conversion requests were processed. Investigators are also looking into any possible involvement of officials or other individuals and whether the evidence establishes a criminal conspiracy.