Telangana: PDS fine rice diversion under investigation as retail prices rise
Authorities have registered 12 cases against traders for illegal stockpiling and overpricing following joint enforcement operations across several districts.
Authorities in Telangana have registered 12 cases against rice traders for irregularities including overpricing and illegal stockpiling, according to Telangana Today. The violations were uncovered during joint inspections by the Civil Supplies, Police, GST, and Legal Metrology departments in Hyderabad, Rangareddy, and Medchal-Malkajgiri districts.
Investigations revealed that some traders were buying fortified rice from beneficiaries for Rs 20 a kg to polish it. These traders allegedly mixed the rice with other varieties and sold them in branded bags at higher retail prices, with some bags being transported to Maharashtra, Karnataka, and Chhattisgarh.
The state government began distributing fine rice through the Public Distribution System (PDS) in March 2025. Currently, the scheme supports 3.42 crore beneficiaries, with each receiving six kg of rice monthly, supported by an annual government expenditure of nearly Rs 14,000 crore.
Retail prices for fine rice varieties are currently between Rs 80 and Rs 95 a kg. Traders expect prices to increase further due to anticipated lower production caused by El Nino.
Civil Supplies Minister N. Uttam Kumar Reddy warned traders against black marketing and hoarding, stating the government would take stringent action against rule violators. Officials said raids would continue and meetings are being held with traders to address the price increases.