Telangana Acts Against 109 Errant Rice Millers Over Missing Paddy

As part of their crackdown, the administration has started attaching properties of 109 defaulting millers and their directors to recover dues. Such drastic action is being taken as the millers are yet to deliver the state government approximately 88,000 metric tonnes (MT) of rice of the 2022–23 season and over 22,000 MT of the 2023–24 season.

Investigations have revealed that the millers are systematically diverting government-procured paddy to neighbouring states. Some millers are allegedly recycling PDS or ration rice illegally procured from the market to fulfil their CMR quotas.

Scores of millers are due crores to the state government, including Sri Sitarama Agro Industries and Mahashakti Agro Industries, who have a combined default of ₹103.68 crore.

There are reports of collusion between officials and errant millers. Some officials are continuing to allot paddy to millers who have been blacklisted as recently as the last Kharif season.

For example, Civil supplies officials have been accused of bypassing restrictions on influential millers in Timmapur and Manakonduru mandals. Supplies of paddy are being made to the millers at nominal bank guarantees, some as low as Rs.10 lakh instead of mandated security deposit equivalent to 25 per cent of the paddy value.

Civil Supplies district manager Rajinikanth said that they have registered criminal cases against millers who have failed to respond to multiple notices of supplying the custom-milled rice. He said they are proceeding against such millers under the Revenue Recovery (RR) Act for reclaiming every rupee due.

The district manager defended civil supplies department supplying paddy to defaulting rice millers. He said such millers may have recently cleared their dues. However, they will verify their records, he stated.

To curb leakage of CMR rice in future, the government has mandated a new bank guarantee requiring defaulters to deposit 25 per cent of the paddy value.

While this has improved delivery rates, Karimnagar District Rice Millers Welfare Association has hit back, accusing government officials of behaving like a vulture.

Association President B. Narsinga Rao alleged that rice millers are being penalised with 25 per cent fines and 12 per cent interest for delays, which are actually due to the unclear policies of the central and state governments.

Association representative T. Karunakar said, in fact, government owes millers ₹1,500 crore in various dues. He warned that if their harassment continues, they will boycott future paddy procurement.
There is speculation that with completion of Yasangi (Rabi) harvest, officials may grant exemption to major defaulters under the pretext of a shortage in milling capacity. However, an official clarified that no such thing will be done without a formal No Objection Certificate (NOC) issued by the district collector.