The Crime Investigation Department (CID), Telangana Police has taken up an investigation into alleged irregularities in the delivery of rice to the Food Corporation of India (FCI) during Kharif 2025–26. The probe follows a complaint lodged by the General Manager (Procurement), Civil Supplies Corporation, on 24 October 2026. Three criminal cases have been registered, and 14 millers have been arrested.
The Government of Telangana procured 71.86 lakh metric tonnes of paddy during Kharif 2025–26. The target was 59.60 lakh metric tonnes of rice for delivery to FCI. Preliminary information indicates that certain rice millers allegedly diverted Sanna Rakam paddy allotted to them to the open market. They allegedly supplied cheaper coarse rice in its place, including rice allegedly sourced from outside the State.
Inspections by Enforcement and Task Force (ETF) teams, followed by laboratory analysis, reportedly showed that rice samples supplied in the cases examined did not match the Sanna Rakam variety stipulated in the allotments. The alleged substitution raises concerns about compliance with the Custom Milled Rice (CMR) Agreement and possible financial loss to the Government.
In Nizamabad, Karimnagar and Mulugu districts, 16 rice mills reportedly delivered 3,385.820 metric tonnes of Doddu Rakam rice against Sanna Rakam allotments. The estimated bonus-related loss in these deliveries is about ₹1.69 crore. A further 45,414.833 metric tonnes had reportedly been allocated for conversion, with a potential bonus-related financial implication estimated at about ₹242 crore. Timely intervention by the Civil Supplies authorities and stoppage orders reportedly prevented further potential loss.
The CID note states that the alleged substitution prima facie establishes violations of the KMS 2025-2026 CMR agreement, criminal breach of trust, wrongful gain, and conspiracy to cause wrongful loss to the Government Exchequer.
The investigation is under progress to:
- establish the alleged diversion and substitution of rice varieties
- establish the role of the concerned millers
- establish how allotments and conversion requests were processed
- collect all documentary, technical and other corroborative evidence
- quantify the actual loss
- establish any involvement of officials and other persons
- establish the possibility of criminal conspiracy and other offences, based on the evidence collected and the applicable law
