Inspections in Khammam reportedly detected a paddy shortfall worth Rs 64.63 crore across 14 rice mills. Allegations of collusion involving millers and officials have emerged, while the BJP has separately accused 39 Kothagudem mills of rice diversion.
Published Date – 3 November 2026, 08:16 PM
Khammam: In the wake of irregularities in custom milled rice (CMR) deliveries, alleged collusion between millers and Civil Supplies Corporation officials has come to light in Khammam.
According to sources, paddy procured during the 2025–26 kharif and rabi seasons was handed over to around 75 millers for CMR processing. However, as the millers failed to deliver the rice, the Vigilance and Enforcement Department conducted inspections.
These checks revealed a significant shortfall of paddy across 14 mills. The value of the missing paddy is said to be Rs 64.63 crore. The authorities recovered a portion of the value and penalties from 11 mills, while cases were registered against six rice mills.
There are allegations that some millers and officials have also managed to influence the vigilance and enforcement teams. Sources said that on October 14, the district assistant manager of the Civil Supplies Corporation inspected the Srirama Modern Parboiled Rice Mill in Khammam.
The assistant manager recorded a stock of 2,384.920 metric tonnes of paddy from the 2025–26 kharif season at the mill. Two days later, when a vigilance and enforcement team inspected the same mill, only 2,071 metric tonnes of paddy were found.
Following an inquiry, the assistant manager was placed under suspension, while the role of some other officials and employees in the corporation is being investigated. In view of this, a team led by a retired DSP has been appointed to inspect rice mills in the erstwhile Khammam district.
However, the team in-charge and two others allegedly collected money from millers to cover up irregularities at their mills. Complaints in this connection have been lodged with the Civil Supplies Commissioner, sources revealed.
Meanwhile, in Kothagudem, district BJP president Baireddy Prabhakar Reddy alleged that about 40,000 metric tonnes of custom milled rice was being illegally diverted at 39 rice mills. However, he alleged that Civil Supplies officials remained indifferent despite being aware of the diversion.
He demanded the immediate arrest of Congress leader Alla Murali, who was booked by the police for allegedly diverting rice worth Rs 6.90 crore. He sought to know why the three Ministers from the disrict and local MLA Kunamneni Sambasiva Rao remained silent over the issue.
