Civil Supplies corporation to sell rice to Karnataka, Tamil Nadu: Uttam Kumar Reddy

HYDERABAD: Irrigation, Food, and Civil Supplies Minister N Uttam Kumar Reddy said that 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, exceeded Rs 3,000 crore, the Minister said. 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 added.

After inspecting a ration shop in Huzurnagar to assess the quality of rice and other services on Monday, he criticised the 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 found 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 was facing 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," he announced.

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

Uttam Kumar Reddy also issued a stern warning against rice millers and others involved in the recycling of PDS (ration) rice. He expressed grave concern over the diversion and misuse of ration rice. Nearly 54 lakh ration cardholders in Telangana received five kgs of rice from the Central Government and one kg from the State Government.

Additionally, 35 lakh ration cardholders receive 6 kg of rice every month. Whether from the Central or State Government, the total procurement cost was Rs 39 per kg. The Minister highlighted that almost 70-75% of ration rice was recycled by millers and other unscrupulous entities.

"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," he stated.