Telangana CM Revanth Reddy orders crackdown on rice miller CMR defaulters
Synopsis
Telangana CM Revanth Reddy has drawn a hard line on rice miller defaults — redirecting paddy allocations to women's SHGs and launching a silo bag pilot in five high-yield districts. The move doubles as a political strike against the previous government, which he holds responsible for dues accumulating into thousands of crores.
Key Takeaways
Revanth Reddy on 12 August ordered intensified recovery of Custom Milled Rice (CMR) dues from defaulting rice millers in Telangana .
Paddy previously allocated to defaulters will now be redirected to women's self-help groups (SHGs) , which will also handle milling.
Officials must submit recovery guidelines to the Cabinet Sub-Committee before a final government decision is taken.
A silo bag pilot project will be launched in Nalgonda, Suryapet, Nizamabad, Peddapalli , and Kamareddy — the state's highest paddy-yield districts.
Each constituency will get 50–100 acres for silo bag facilities managed by SHGs.
The CM blamed the previous government for irregularities that allowed dues to accumulate into thousands of crores .
Telangana Chief Minister A. Revanth Reddy on Wednesday, 12 August directed officials to step up recovery of dues from rice millers who have defaulted on Custom Milled Rice (CMR) targets, warning of stern action against those deliberately evading payments. The directive came during a review of the civil supplies department's performance, held alongside Civil Supplies Minister Uttam Kumar Reddy in Hyderabad.
Key Directives from the CM
Revanth Reddy made clear that while the government would maintain a cooperative stance with millers operating in good faith, it would not tolerate wilful default. He instructed officials to recover the value of every single grain owed to the state and to formulate specific recovery guidelines, with a report to be submitted to the Cabinet Sub-Committee. The state government will take a final decision on the matter after the sub-committee's review.
In a significant policy move, the CM announced that paddy previously allocated to defaulting millers would be redirected to women's self-help groups (SHGs), which would also be entrusted with the milling responsibilities.
Blame on Previous Government
Revanth Reddy accused the previous state government of irregularities in collecting dues from rice millers, which he said led to the accumulation of outstanding payments running into thousands of crores. He took strong exception to opposition parties blaming the current administration for the mounting recovery burden, arguing the problem was inherited, not created, by the present dispensation.
Paddy Storage Action Plan
Acknowledging recurring difficulties in storing paddy stocks each season, the CM directed officials to prepare an immediate action plan. A pilot project for constructing silo bags will be launched in high-yield paddy districts — Nalgonda, Suryapet, Nizamabad, Peddapalli, and Kamareddy.
Each constituency will receive 50 to 100 acres of land for silo bag facilities, to be managed by SHGs. A joint meeting of the Ministers of Revenue, Civil Supplies, and Women's Welfare will be convened to plan construction. Officials were also asked to explore spacious platform construction under the VBG-Ram G scheme, use of German tents for storage, and advance identification of private warehouses, function halls, old cinema theatres, and other sheds at the mandal and village levels for leasing.
CM's Post on Farmer Output and Kaleshwaram Row
Separately, Revanth Reddy posted on X crediting farmer-centric policies — including farm loan waivers, Rythu Bima, Rythu Bharosa, 24-by-7 free power, and improved water availability — for record paddy production in Telangana over the past two years. He shared a newspaper article by Prof Aldas Janaiah, Vice-Chancellor of Prof Jayashankar Telangana Agriculture University, which argues that the Kaleshwaram project played no role in the state's bumper paddy harvest.
In his post, the CM quoted the article: 'Good monsoon in the last 10 years was the major reason for the bountiful of paddy yield in the State. An additional 40 lakh acres came under cultivation due to 15 lakh new borewells in the state.' He added that the entire opposition narrative on agriculture had been exposed, and described the Congress government's tenure as the beginning of a genuine transformation for farmers.
With the Cabinet Sub-Committee review pending and the silo bag pilot set to roll out, the state's rice milling and paddy storage overhaul is likely to remain a pressure point in the months ahead.
Point of View
Expands the Congress government's social-welfare footprint, and insulates the move from industry pushback. But the deeper question is enforcement: Telangana's civil supplies machinery has historically struggled with dues recovery, and a Cabinet Sub-Committee layer adds process without guaranteeing speed. The silo bag pilot addresses a genuine seasonal storage crisis, but leasing cinema halls and function halls as grain storage is a stopgap, not a structural fix. The Kaleshwaram counter-narrative, meanwhile, signals that the paddy surplus is fast becoming a political battlefield ahead of the next election cycle.
NationPress
12 Aug 2026
Frequently Asked Questions
What is the CMR default issue in Telangana?
Custom Milled Rice (CMR) is rice that private millers are required to process and deliver to the state government from paddy procured under public procurement. Several millers in Telangana have defaulted on these delivery targets, leading to dues reportedly running into thousands of crores. CM Revanth Reddy has now ordered an intensified recovery drive.
What action will Telangana take against defaulting rice millers?
The state government will formulate specific recovery guidelines to be reviewed by a Cabinet Sub-Committee, after which a final decision will be taken. Paddy previously allocated to defaulting millers will be redirected to women's self-help groups, which will also be given milling responsibilities.
What is the silo bag pilot project announced by CM Revanth Reddy?
The silo bag pilot is a paddy storage initiative to be launched in five high-yield districts — Nalgonda, Suryapet, Nizamabad, Peddapalli, and Kamareddy. Each constituency will receive 50 to 100 acres of land for these facilities, which will be managed by self-help groups. It is intended to address recurring seasonal storage shortages.
Why did CM Revanth Reddy blame the previous government over rice miller dues?
Revanth Reddy accused the previous Telangana government of irregularities in collecting dues from rice millers, which he said allowed arrears to accumulate into thousands of crores. He also criticised opposition parties for blaming the current administration for a problem he says was inherited.
What did CM Revanth Reddy post on X about Telangana's paddy production?
The CM shared a newspaper article by Prof Aldas Janaiah of Prof Jayashankar Telangana Agriculture University, which argues that the Kaleshwaram project had no role in the state's record paddy output. He attributed the bumper harvest to good monsoons over the past decade, 15 lakh new borewells adding 40 lakh acres under cultivation, and Congress-era farmer welfare schemes.
