‘Every Grain in CMR process Government Property’

Minister Orders Audit of Decade-Long CMR operations

metro india news I hyderabad

The Telangana Government has launched its most extensive review of the Custom Milling Rice (CMR) system since the State's formation, ordering a 10–12-year audit of paddy procurement, rice milling, recoveries, legal proceedings and enforcement measures to strengthen accountability across the procurement chain.

Irrigation and Civil Supplies Minister N. Uttam Kumar Reddy, who chaired a high-level review meeting, directed officials to intensify efforts to recover government dues, identify systemic weaknesses and introduce reforms to safeguard public assets.

The review covered the quantity of paddy procured over the past decade, CMR receivable and delivered, district-wise and mill-wise defaults, pending recoveries, vigilance investigations and legal action against defaulting millers.

The Minister said the government's priority was the recovery of public money and government-owned foodgrain rather than punishment alone. Officials informed him that while legacy defaults account for a major share of outstanding liabilities, 

the immediate focus is on recovering long-pending dues. Multiple recovery options, including cash payments, return of paddy and delivery of fine rice, are being pursued simultaneously.

After granting defaulting millers a limited settlement window, the government has already made significant recoveries. Officials were directed to prepare a mill-wise, time-bound recovery plan for every pending case.

Uttam Kumar Reddy said every bag of paddy procured under the Minimum Support Price (MSP) programme represents public money invested on behalf of Telangana's farmers. Paddy procured by the Telangana State Civil Supplies Corporation is entrusted to empanelled rice millers, who are contractually required to mill it and return the prescribed quantity and quality of rice for supply to the Food Corporation of India (FCI) and distribution through the Public Distribution System (PDS).

He noted that while the overwhelming majority of millers have honoured their commitments, a small section had defaulted by delaying deliveries, failing to return rice, diverting government stocks and violating contractual obligations.

Technology-driven reforms

The government is also overhauling the CMR regulatory framework by revising CMR Control Orders with stronger legal provisions, enhanced bank guarantee requirements, stricter penalties and improved enforcement mechanisms. The review also covered revenue recovery, attachment of movable and immovable properties, invocation of bank guarantees, civil litigation and criminal prosecutions.

To prevent future defaults, the government plans to introduce QR-coded gunny bags, GPS-based vehicle tracking, geo-tagged inspections, real-time stock reconciliation, integration of procurement, milling and FCI databases, early-warning systems and risk-based audits of rice mills.

The Minister assured that MSP procurement and Direct Benefit Transfer (DBT) payments to farmers would continue without disruption. Honest millers, he said, would receive full government support, while those diverting government stocks or violating contractual obligations would face stringent legal action.

The government described the exercise as a comprehensive performance audit aimed at accelerating recoveries, strengthening vigilance, improving legal enforcement and creating a transparent, technology-driven procurement system.

Vigilance drive

Director General of Vigilance and Enforcement D.S. Chouhan and Civil Supplies Commissioner Stephen Ravindra reviewed inspections, raids, criminal cases, recoveries and prosecutions relating to CMR defaults. Vigilance teams will conduct physical inspections of rice mills, verify stock registers, reconcile procurement records with available stocks and investigate suspected diversion of government-owned paddy and rice. Officials said criminal cases would be registered wherever fraud, diversion or criminal breach of trust is established, while persistent defaulters could also face blacklisting and other administrative action.