Officials familiar with the matter say the department is exploring options to prevent further loss, but no concrete mechanism has been announced yet.

B Kartheek

HYDERABAD: The state government’s decision to supply superfine variety rice to ration card holders has no doubt brought cheers to lakhs of beneficiaries. On the flip side, the decision is creating a major headache for officials in managing the existing coarse variety rice stocks.

According to official estimates, around 1.4 lakh metric tonnes of coarse rice is rotting in godowns across the state.

To address the issue, the Consumer Affairs, Food and Civil Supplies department on September 9 issued GO 14, prescribing a disposal price of Rs 24 per kg for the stocks. At this rate, the total value of the existing inventory is estimated to be Rs 336 crore.

Officials point out that the notified price is significantly lower than the usual market rate of around Rs 36 per kg. Even so, there have been no buyers so far, they said.

The shift to superfine rice distribution in March this year led to the abrupt stagnation of coarse rice stock. By the time the new variety was introduced, warehouses and fair price shops already held substantial quantities of coarse rice.

Officers and stakeholders note that a decision on disposal should have been taken earlier to avoid prolonged storage.

Field reports indicate that the stocks have remained untouched for nearly eight months, with some consignments showing signs of spoilage and pest infestation. Despite these concerns, the disposal process has not moved forward.

Officials familiar with the matter say the department is exploring options to prevent further loss, but no concrete mechanism has been announced yet.

With sizable quantities still in storage and the notified sale yet to commence, the issue continues to place logistical and financial strain on the Civil Supplies department, an official said.

Published Date: December 2, 2025