Rice Millers in Telangana Default on Grain Payments

Telangana rice millers default on paddy payments, with ₹230 crore dues pending despite notices and vigilance inspections.

Rice millers in the erstwhile districts of Telangana have failed to return procured paddy or pay dues to the government. Officials issued notices, but millers have not responded. Despite vigilance reports, grain stocks were neither returned nor accounted for. Public representatives are reportedly shielding the millers, allowing defaults to continue unchecked.

Every season, paddy purchased from farmers is allocated to millers under custom milling norms. However, for the 2022–23 season, several millers failed to deliver rice to the Food Corporation of India. Around ₹230 crore worth of grain remains pending with millers in the region. Instead of supplying rice, some diverted it to the open market.

Civil Supplies and Vigilance departments carried out inspections and issued multiple notices. Based on enforcement reports, the government floated tenders and directed millers to hand over stocks to contractors. Yet most millers refused to comply. Nearly 30 mills now face criminal cases, while 70 others still owe large payments.

Millers are reportedly lobbying politicians for relief, seeking more time to settle dues. Some officials accused of helping millers escaped action through lobbying. Observers say only strong government intervention can ensure recovery of pending stocks and protect farmers’ interests.

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