Rice Millers Hoard ₹50-Crore Worth PDS Rice, Says V&E Report

Hyderabad: Vigilance and Enforcement (V&E) director Shikha Goel has submitted a report to the government on the diversion of Custom Milled Rice (CMR) — fine rice meant for the Public Distribution System (PDS) — worth ₹50 crore in Telangana. Despite months having passed since the launch of the fine rice distribution scheme, several rice millers allegedly continued diverting PDS rice.

Goel said that raids were conducted on rice mills across different parts of Telangana, during which multiple violations were detected. “After a thorough inquiry, it was found that PDS rice worth at least ₹50 crore was in the possession of rice millers who had obtained the material illegally,” she stated.

A detailed report on the findings has been submitted to the government.

According to the report, the diversion took place through middlemen who supplied PDS rice to private millers for illegal profit. The vigilance department is now tracing these intermediaries to determine how they procured and diverted the rice, and further investigation into their activities is underway.

The report noted that V&E officials, along with civil supplies department officers, conducted raids on PVR Agro Industries located at Jafargudem village in Raghunathapalli mandal of Jangaon district. Similar raids were also carried out at a storage shed in Mujahidpur village under the Kutkacharla police limits of Cyberabad, where the accused had stored about 75 quintals of PDS rice worth approximately `2.7 lakh.

In Nalgonda district, officials found that Chamundeshwari Agro Industries Pvt. Ltd., located at Uppalapahad village in Kethepally mandal, had diverted 1,39,671.86 quintals of CMR paddy pertaining to the Rabi season of 2022-23, valued at `28.88 crore. In Mulugu district, the team also found irregularities at Achyutarao Agro Industries, where PDS rice was being stored in violation of procurement and milling regulations.

Vigilance and Enforcement (V&E) personnel have unearthed illegally stored rice meant for the public distribution system with rice mills and individuals.

Oct. 24: Violations found in raids on Achyutrao Agro Industries in Mulugu district.

Oct. 23: PDS rice worth `1.45 crore recovered from MM Food Processing rice mill in RC Puram of Sangareddy district.

Oct. 17: Warasiguda resident held for storing 7.86 quintals PDS rice worth `33,012 and 100 kgs wheat.

Oct. 16: V&E raid on Chamundeshwari Agro Industries Pvt. Ltd, Uppalapahad, Nalgonda district, finds 1,39,671 quintals of CMR paddy pertaining to Rabi 2022-23, valued at `28,88 crore.

Oct. 14: PDS rice found in Rajarajeswari rice mill in Karimnagar district.