Hyderabad: Crime Investigation Department (CID) officials on Sunday arrested 14 rice millers across the state for alleged irregularities, including the diversion of fine rice and replacing it with coarse rice. According to officials, the civil supplies department found prima facie evidence of irregularities in 19 districts and lodged criminal cases.“Govt procured 71.8 lakh metric tonnes of paddy during kharif 2025–26, against a target of 59.6 lakh metric tonnes of rice for delivery to FCI. Preliminary information indicates that certain rice millers allegedly diverted paddy allocated to them for fine rice production to the open market and supplied cheaper coarse rice in its place, including rice allegedly sourced from outside the state,” officials said.The irregularities came to light during checks conducted by the civil supplies department, which found that the rice supplied did not meet the prescribed standards under the custom-milled rice agreement. In Nizamabad, Karimnagar and Mulugu districts, 16 rice millers allegedly cheated the govt by delivering 3,385 metric tonnes of coarse rice instead of fine rice. The estimated loss related to the bonus component of these supplies was Rs 1.69 crore, officials said.Officials said timely intervention helped prevent a potential loss of Rs 242 crore to the exchequer, as 45,414 metric tonnes of paddy had already been allotted to the millers. Three criminal cases have been registered, and 14 millers have been arrested. “The investigation is underway to establish the alleged diversion and substitution of rice varieties, determine the role of millers concerned, examine how allotments and conversion requests were processed, collect all documentary, technical and other corroborative evidence, quantify the actual loss and ascertain whether any officials or other persons were involved,” officials said in a press note.
