Civil Supplies Minister N. Uttam Kumar Reddy directs officials to conduct a decade-long audit of paddy procurement and CMR operations. (Image: X)

Hyderabad: The government is considering utilising technology to transform procurement monitoring and prevent millers defaulting on custom milling rice (CMR).

Among the reforms, which are under consideration, are QR-coded gunny bags for end-to-end traceability, GPS-based vehicle tracking, geo-tagged inspections, real-time stock reconciliation, integration of procurement, milling and FCI databases, early-warning systems to detect defaults and risk-based auditing of rice mills.

During a meeting here Tuesday, civil supplies minister N. Uttam Kumar Reddy directed the officials to prepare an audit for the previous decade of paddy procurement, rice milling operations, recoveries, legal proceedings and enforcement measures.

Officials informed the minister that while legacy defaults accounted for a major share of liabilities, the immediate priority was recovering dues long overdue from the default millers. Multiple recovery options — including cash payments, return of paddy and delivery of fine rice — were being pursued simultaneously to maximise recoveries.

Director-General, vigilance and enforcement, D.S. Chouhan and civil supplies commissioner Stephen Ravindra presented a detailed review of inspections, raids, criminal cases, recoveries and prosecutions relating to CMR defaults.

The government has initiated an overhaul of the regulatory framework governing CMR operations. Officials are preparing revised control orders incorporating stronger legal provisions, clearer contractual obligations, enhanced bank guarantee requirements, stricter penalties for default and improved enforcement mechanisms.

The meeting reviewed the progress of revenue recovery proceedings, attachment of movable and immovable properties, invocation of bank guarantees, civil litigation and criminal prosecutions. The minister directed officials to remove procedural bottlenecks delaying recoveries and ensure closer coordination between civil supplies, revenue, vigilance and legal departments.

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