The Telangana Crime Investigation Department arrested 14 rice millers on Sunday after coordinated raids across multiple districts over the alleged diversion of premium Sanna Rakam rice meant for delivery to the Food Corporation of India, with the state estimating a loss of ₹1.96 crore so far.
Three criminal cases have been registered in connection with the alleged irregularities, Telangana CID Director Charu Sinha said. The action followed a complaint filed on October 24 by the General Manager (Procurement) of the Telangana Civil Supplies Corporation regarding rice deliveries under the Kharif 2025-26 procurement cycle.
According to the CID, certain millers diverted Sanna Rakam paddy allotted to them to the open market and supplied cheaper Doddu Rakam, or coarse rice, in its place. The investigation also found that some replacement rice was sourced from other states. Sanna Rakam is a premium variety specified in the allotments made for conversion and delivery to the FCI.
The alleged substitution was identified through inspections by Task Force teams and subsequent laboratory analysis. The CID said samples supplied by the mills did not conform to the Sanna Rakam variety stipulated in the relevant allotments.
In Nizamabad, Karimnagar and Mulugu districts, 16 rice mills supplied 3,385.820 metric tonnes of Doddu Rakam rice against Sanna Rakam allotments, according to the preliminary investigation. The substitution in these cases caused an estimated loss of ₹1.69 crore to the state exchequer.
The investigation also identified another 45,414.833 metric tonnes that had been allocated for conversion. Civil Supplies authorities issued stoppage orders and intervened in time, preventing a potential loss estimated at ₹242 crore, the CID said. The prevented loss has not been included in the ₹1.96-crore loss already recorded.
The state government procured 71.86 lakh metric tonnes of paddy during Kharif 2025-26, against a target of 59.60 lakh metric tonnes of rice for delivery to the FCI. The figures indicate the scale of the procurement and milling chain now being examined by investigators, although the CID has not yet quantified the total alleged diversion across Telangana.
Sinha said the offences prima facie indicated violations of the KMS 2025-26 Custom Milled Rice agreement, along with alleged criminal breach of trust, wrongful gain, wrongful loss to the government and criminal conspiracy. The charges remain subject to the investigation and further legal proceedings.
The CID is continuing to examine whether the alleged substitution was part of a wider state-wide pattern. Its inquiry includes the role of individual millers, the allotment process, possible involvement of officials and the documentary and technical evidence needed to calculate the final loss.
The investigation follows the Civil Supplies Corporation’s complaint and the laboratory confirmation of non-conforming samples. Further action will depend on the evidence collected by the CID and the outcome of the registered criminal cases.
