Over 6,300 tonnes of government paddy worth ₹23 crore missing from Yadadri rice mill

Authorities in Telangana, India, have registered a case against two rice mill owners after discovering a shortage of over 6,300 metric tonnes of government-allocated paddy. The missing stock is valued at approximately ₹23 crore, leading to an investigation into suspected illegal diversion of government resources.
Why it matters
This incident highlights significant vulnerabilities in government supply chain management and the potential for large-scale financial fraud in agricultural distribution systems.
A shortage of over 6,300 metric tonnes of government paddy, valued at approximately ₹23.03 crore including penalties, has been detected at a rice mill in Yadadri-Bhongir district, prompting the police to register a case against two mill owners over suspected illegal diversion of stocks.
The irregularities came to light during a physical inspection of paddy stocks and Custom Milled Rice (CMR) supplies at Shiva Parboiled Industries in Raigiri village, under the limits of Bhongir Rural police station, on Wednesday (October 7).
According to the police, the inspection was carried out by officials and technical staff of the Telangana State Civil Supplies Corporation Limited (TGSCSCL) to verify government paddy allocated to the mill for the Kharif 2025-26 season.
The inspection revealed a shortage of approximately 6,302.80 metric tonnes of government paddy. The value of the missing stocks, including applicable penalties, was estimated at ₹23,03,67,347.
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