Archive · 2 Oct 2026
PDS Rice Polished and Sold as Branded Rice in Karimnagar
The government gives fine rice to eligible families through ration shops.
Some people are allegedly taking this rice and selling it to traders instead.
The traders send it to mills for polishing.
The polished rice is placed in colorful bags with different brand names.
Customers may buy it without knowing that it originally came from the ration system.
The traders can make more money by selling it as branded rice.
Police recently seized 306.88 quintals of this rice in Karimnagar.
Officials said they would take legal action against people involved in diverting the rice.
Illegal operators are allegedly collecting fine PDS rice from cardholders, agents and ration dealers in Karimnagar district.
The rice is polished at mills and packed in colorful bags before being sold as branded rice.
Collectors reportedly pay cardholders about ₹15 per kilogram, while branded rice sells for ₹5,500–₹9,000 per quintal.
Taskforce police seized 306.88 quintals of PDS rice from Hanuman Industries in Padmanagar.
The district supplies officer said cases would be registered against millers and ration dealers involved in diversion.
- Who
- Illegal rice traders, agents, some ration dealers and millers are alleged to be involved; civil supplies officials and taskforce police are investigating.
- What
- Fine-variety rice distributed through the public distribution system is allegedly being collected, polished and sold in branded packaging.
- When
- The report describes an ongoing practice; police recently made a seizure, and two cases against dealers were registered this year.
- Where
- Karimnagar district, including Hanuman Industries in Padmanagar on the outskirts of Karimnagar town.
- Why
- The operators allegedly divert PDS rice to sell it at substantially higher prices as branded rice and make a profit.
- Rice seized
- 306.88 quintals of PDS rice
- Seizure location
- Hanuman Industries, Padmanagar, on the outskirts of Karimnagar town
- Reported payment to cardholders
- About ₹15 per kilogram from collecting agents
- Reported branded-rice price
- ₹5,500 to ₹9,000 per quintal
- Brands mentioned
- Jai Sreeram, Kurnool No.1, HMT, Tomato Gold, Kisaan, Annapurna, Raja Gold and Double House
- Official action
- Two cases were registered against dealers this year; officials said millers and dealers involved in diversion would face FIRs
- Mill status
- The district supplies officer said Hanuman Industries had not returned custom milling rice for 2024–25