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    HomeTelanganaRice sales in Karimnagar plagued by widespread fraud

    Rice sales in Karimnagar plagued by widespread fraud

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    Prices of fine rice in Karimnagar district have been rising sharply, despite an increase in cultivation. Traders are selling rice under various brand names at inflated prices, making it difficult for common and middle-class people to afford. Authorities seem indifferent to the issue, leading to allegations of traders taking advantage of the lack of supervision.

    The cost of a quintal of new rice has gone up from Rs 3,200 in January 2023 to Rs 3,400 in October 2023. Last year, fine rice was priced at Rs 2,600 per quintal during the monsoon. Now, it is being sold for around Rs 6,000 per quintal. The district’s population of 36,19,599 requires about 28 lakh metric tonnes of rice every month, with 70% of families using fine quality rice.

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    Traders are resorting to deceptive tactics to sell rice, such as packaging it in colorful bags claiming to be 25 kg when it actually contains less. Some areas have shopping malls set up to attract customers, with lucky draws offered during festivals. Many rice depots lack original permits, and rice bags do not have required details like price, packing date, and company information.

    Despite the central government lifting the five percent tax on rice, prices continue to rise. Traders warn of further increases due to low stocks and reports of artificial shortages created by storing rice in secret warehouses. The expected reduction in price by Rs 500 per quintal annually has not materialized either.

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    Normally, milling a quintal of paddy yields 60 to 65 kg of rice, which should ideally cost less than Rs 4000 per quintal. However, in the market, prices start from Rs 4500 and go up to Rs 6,000 under branded names.

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    Rajesh M
    Rajesh M
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