PDS rice smuggling racket thrives in Telangana, police make multiple seizures
PDS rice smuggling networks are thriving across Telangana, with syndicates diverting ration supplies from beneficiaries and transporting them to neighbouring States. Police across Hyderabad, Cyberabad and Malkajgiri have seized large quantities of rice in multiple raids over the past week.
Published Date - 12 April 2026, 04:00 PM
Hyderabad: It’s raining money for the PDS rice smugglers in the State. With the government distributing three-month rations through fair price shops, the PDS rice mafia has become hyperactive and is procuring fine-quality rice from beneficiaries and transporting it to neighbouring States.
In the last week, the police across the tri-commissionerates of Hyderabad, Cyberabad and Malkajgiri, the civil supplies department, and the Vigilance and Enforcement Department caught several persons who were stocking and transporting the rice.
According to the insiders of the illicit business, the rice is bought in two ways: one directly through the fair price shop dealer and the other from the beneficiaries. “Fair price shop dealers pay for the rice to the beneficiary and retain it in the shop. In evening hours, the smugglers send auto rickshaws and collect the rice bags. The other way is boys working for the PDS commodities smuggling syndicates move around slums and collect it from the beneficiaries,” the man explained. Several ration shop dealers are allegedly selling the rice to the agents at Rs 18 per kg.
There are at least a few big syndicates operating in Pahadishareef, Balapur, Musheerabad, Tallabkatta, Asifnagar, Rajendranagar, Bhavaninagar, Falaknuma, Bahadurpura, Tappachabutra, and Chaderghat. A majority of them enjoy political support and pay a monthly ‘goodwill’ amount to the local stations.
“Residential houses and shops in slums are hired to serve as godowns. The PDS rice collected is stocked in the premises and later transported to big storage houses on city outskirts, from where it is transported to other States through Outer Ring Road slip road,” said a police official.
The transportation is done during late-night hours to Zaheerabad and neighbouring mandals via the Outer Ring Road. In a truck, about 14 tonnes of rice is transported, and the earnings per truck are between Rs 1,30,000 and Rs 1,50,000, it is said. The rice from Zaheerabad is transported to Karnataka and Maharashtra.
“The local agents are employing youngsters by paying Rs 500 a day and providing them with scooters to move around and collect the rice,” said an official of the Civil Supplies Department.
11 April – Pahadishareef police seized 8 quintals of PDS Rice and caught 2 persons
11 April – Kalapather police seized 11 quintals of PDS commodities, including rice and wheat
10 April – Chandrayangutta police seized 6 quintals of PDS rice and caught one person
8 April – The Balapur police seized 523 quintals of PDS rice and 69 quintals of wheat
6 April – The Commissioner’s Task Force seized 103 quintals of PDS rice and a DCM at Chandrayangutta