The Telangana Government has ordered a comprehensive audit of the Custom Milling Rice (CMR) system covering the last 10 to 12 years, marking the most extensive review of procurement and milling operations since the State’s formation.
He stated that while most rice millers have fulfilled their contractual obligations, a small section defaulted by delaying deliveries, failing to return rice, diverting government stocks and violating agreements. Multiple recovery options, including cash payments, return of paddy and delivery of fine rice, are being pursued to maximize recoveries.
The government also directed Vigilance and Enforcement officials to conduct physical inspections of rice mills, verify stock registers, reconcile procurement records and initiate criminal action wherever evidence of fraud or diversion of government stocks is found.
Emphasizing that every bag of paddy procured under the MSP scheme is purchased with public money, the Minister said every grain entrusted to rice millers remains government property until the prescribed quantity of rice is returned.
He stated that while most rice millers have fulfilled their contractual obligations, a small section defaulted by delaying deliveries, failing to return rice, diverting government stocks and violating agreements. Multiple recovery options, including cash payments, return of paddy and delivery of fine rice, are being pursued to maximize recoveries.
The government also directed Vigilance and Enforcement officials to conduct physical inspections of rice mills, verify stock registers, reconcile procurement records and initiate criminal action wherever evidence of fraud or diversion of government stocks is found.
To prevent future defaults, the government is preparing a revised CMR regulatory framework with stricter contractual provisions, stronger bank guarantees, tougher penalties and improved enforcement mechanisms. Technology-driven reforms such as QR-coded gunny bags, GPS vehicle tracking, geo-tagged inspections, real-time stock reconciliation and integrated procurement databases are also being planned.
Assuring farmers that procurement operations and MSP payments will continue without disruption, the Minister said honest rice millers have nothing to fear, while those involved in diversion of government stocks or contractual violations will face strict legal action.