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

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.

Following the findings, Yadadri District Manager of TGSCSCL Dachepalli Harikrishna, 47, lodged a complaint with the Bhongir Rural police, alleging irregularities in the handling of government paddy entrusted to the mill for custom milling.

Under the custom milling arrangement, paddy supplied by the government is processed by rice mills, which are required to deliver the stipulated quantity of milled rice back to the government.

The complaint alleged that the mill management had failed to account for the allocated paddy stocks and fulfil its obligations concerning the delivery of custom-milled rice.

Based on the complaint, the Bhongir Rural police registered a case against the mill’s partners, Gampa Nagender and Manchala Ravinder. Police said an investigation was under way to establish how the stocks went missing and determine the circumstances surrounding the suspected diversion of government paddy.