Telangana Bharatiya Janata Party (BJP) president N. Ramchandra Rao on Thursday, 6 August alleged a large-scale diversion of government-procured paddy worth ₹500 crore and wrote to Chief Minister Revanth Reddy demanding a fair, transparent, and expeditious investigation into the matter. The alleged irregularities, involving nearly 90,000 tonnes of paddy, have triggered widespread concern among farmers and the public across Telangana.

What the Allegations State

According to Ramchandra Rao's letter, thousands of tonnes of paddy entrusted to mills for custom milling were neither found in stock nor returned to the government in the form of rice, resulting in substantial losses to the state exchequer. Media reports, he noted, have highlighted a widening gap — dating back to 2023 — between the quantity of paddy supplied to millers and the rice actually received by the government.

'Various media reports have stated that thousands of tonnes of paddy entrusted to mills for custom milling were neither found in stock nor returned to the government in the form of rice, resulting in substantial losses to the state exchequer,' Rao wrote in his letter to the Chief Minister.

Why the Paddy Procurement System Matters

The BJP leader stressed that the paddy procurement system is a crucial safeguard for farmers' livelihoods and a cornerstone of the public distribution framework. Any diversion or misuse of government stocks, he argued, not only causes significant financial loss to the public exchequer but also erodes farmer confidence in an already fragile procurement mechanism. This comes amid broader concerns about accountability gaps in Telangana's agricultural supply chain.

Key Demands Raised by the BJP

Ramchandra Rao demanded that the ongoing investigation be conducted strictly in a fair and transparent manner, and that all those found responsible — 'irrespective of their position or influence' — be dealt with in accordance with the law. He also called for systemic safeguards to strengthen oversight across procurement, transportation, storage, and custom milling processes to prevent recurrence.

'Appropriate systemic safeguards must also be instituted to strengthen oversight and accountability across the procurement, transportation, storage and custom milling processes, so as to prevent the recurrence of such incidents and restore public confidence in the system,' the letter reads.

Political and Farmer Impact

The allegations carry significant political weight, with the BJP using the issue to press the Indian National Congress (Congress)-led state government on accountability. Farmers, who depend on the procurement mechanism for assured income, stand to be most directly affected if the alleged irregularities are confirmed. The reported scale of the scam — spanning multiple seasons from 2023 onwards — suggests systemic, not isolated, failure, critics argue. The state government is yet to formally respond to the letter.