Uttam warns millers of stern action against recycling of ration rice

Hyderabad: Irrigation, Food, and Civil Supplies Minister N Uttam Kumar Reddy has issued a stern warning of severe consequences against rice millers and others involved in the recycling of PDS (ration) rice.

After inspecting a ration shop in Huzurnagar to assess the quality of rice and other services on Monday, Uttam Kumar Reddy expressed grave concern over the diversion and misuse of ration rice.

"Currently, nearly 54 lakh ration cardholders in Telangana receive 5 kgs of rice from the Central government and 1 kg from the State Government. Additionally, the State government provides 6 kg of rice every month for another 35 lakh ration cardholders. Whether from the Central or State government, the total procurement cost amounts to Rs 39 per kg. However, almost 70-75 percent of ration rice is being recycled by millers and other unscrupulous entities," he pointed out.

"The State government views this matter very seriously. Anyone found involved in the recycling of rice will face severe consequences. The Congress government is committed to taking stringent action against millers or any other individuals engaged in the recycling of ration rice," Uttam stated.

He said the previous BRS government left the Civil Supplies Corporation burdened with a massive debt of about Rs 56,000 crore. When the BRS Government assumed office in 2014, the debt was only Rs 3,300 crore. Presently, the annual interest burden of the corporation, responsible for ration distribution and paddy procurement, exceeds Rs 3,000 crore. Over the past decade, the corporation incurred losses of Rs 11,000 crore due to the gross neglect of the department by the previous government, he pointed out.

Furthermore, the Minister criticised the distorted policy of the earlier BRS government, which entrusted paddy stocks worth Rs 22,000 crore to rice millers without any security or bank guarantee. The corporation now finds itself in a precarious and alarming position. While Karnataka and Tamil Nadu offered to purchase the substantial rice stocks from the Telangana government, the previous government, for political reasons, opted to let the rice deteriorate in godowns, burdening the corporation with interest expenses rather than selling the rice at market prices to Karnataka and Tamil Nadu. With limited storage space and a substantial interest burden, the corporation is in an alarming situation.

"We are exploring the sale of rice to Karnataka and Tamil Nadu and considering an open sale of paddy stocks through a transparent mechanism. We are making efforts to rescue the corporation from its precarious position," Uttam announced.

He informed that the last completed audit of the corporation was for the year 2018-19. "We will expedite the audit of the corporation and implement measures to streamline the department, enhancing services to ration cardholders and farmers from whom paddy is procured," the Minister said.