89 Rice Mills Under Scanner Over ₹927 Crore Grain Shortage in Telangana
Vigilance inspections reportedly find 3.72 lakh tonnes of missing government grain across 89 rice mills; 28 cases registered and 26 millers arrested.
HYDERABAD, August 15, 2026: Large-scale irregularities have reportedly surfaced in Telangana's Custom Milled Rice (CMR) system, with Vigilance and Enforcement officials identifying a shortage of 3,72,693.23 tonnes of grain across 89 rice mills, according to the report.
The value of the missing grain has been estimated at ₹927.16 crore.
WHAT HAPPENED
According to the report, the government purchases paddy from farmers using funds raised through bank loans and subsequently supplies the grain to rice millers for processing.
The millers are required to return rice to the government after milling. Officials reportedly found that substantial quantities of government-supplied grain had instead been diverted and sold.
The irregularities relate largely to the 2022–23 Rabi and 2025–26 Kharif seasons.
₹715 CRORE RECOVERED
Vigilance and Enforcement officials have been conducting statewide inspections since July 21 under the leadership of Vigilance Director General D.S. Chauhan.
According to the report, officials identified irregularities worth around ₹927.14 crore within three weeks and recovered approximately ₹715 crore from millers.
The recovery drive intensified following directions from the state government to recover government grain and take strict action against those responsible.
CRIMINAL CASES AND ARRESTS
Officials reportedly gave millers a short deadline to repay the value of diverted grain.
Where the amount involved was substantial, millers were reportedly required to provide an undertaking to pay 50% of the amount within a week.
Those who failed to respond faced criminal proceedings.
So far:
28 cases have been registered.
50 people have reportedly been named as accused.
26 millers have been arrested.
EXTENT OF THE SHORTAGE
The inspections reportedly identified the following discrepancies:
Category Grain shortage
CMR grain shortage 1,84,669.88 tonnes
Auction grain shortage 1,88,023.35 tonnes
Total missing grain 3,72,693.23 tonnes
The report says the shortages relate to different seasons between Rabi 2022–23 and Kharif 2025–26.
21 DISTRICTS UNDER SCANNER
Officials reportedly detected irregularities in rice mills across 21 districts.
The report identifies Suryapet, Nizamabad and Jagitial among the districts where large quantities of grain were allegedly diverted.
The supplied report indicates that detailed figures for the five districts with the highest irregularities were to follow, but those figures are not included in the text provided.
GOVERNMENT CRACKDOWN
The crackdown follows Chief Minister A Revanth Reddy's decision to take strict action against millers allegedly involved in irregularities.
Civil Supplies Minister N Uttam Kumar Reddy also reportedly directed officials to recover every grain supplied to millers.
Vigilance and Civil Supplies officials have therefore intensified inspections and recovery operations.
KEY FIGURES
89 rice mills inspected with reported shortages.
3,72,693.23 tonnes of grain reportedly missing.
Estimated value: ₹927.16 crore.
Around ₹715 crore reportedly recovered.
28 criminal cases registered.
50 accused named.
26 millers arrested.
Irregularities detected across 21 districts.
WHAT HAPPENS NEXT
Vigilance and Civil Supplies officials are expected to continue inspections and recovery operations across Telangana. Further criminal action could follow against millers and other persons found responsible for diverting government grain.