Telangana warns rice traders of legal action over hoarding as old stocks flood market

Telangana’s Civil Supplies Department told rice millers and wholesale traders that any attempt to create artificial scarcity or hoard grain will attract legal action, as the state’s current rice inventories are entirely from the previous season, making price hikes unjustifiable. The warning was issued by Director G.V. Shyam Prasad Lal in a meeting on Oct 28 in Hyderabad with prominent millers and traders from Miryalguda, Nizamabad and Nalgonda. The officials said the market is stocked only with old rice, so prices cannot be raised abnormally. Statewide, consumers are paying nearly double the usual price for food grains. Farmers are selling the current Kharif harvest in open markets at ₹3,000‑₹3,500 per quintal, while private traders are buying fresh grain directly from farms. Some buyers are pre‑booking rice at up to ₹5,000 per quintal, hoping for better rates later. The department also instructed millers and traders to keep the supply chain smooth if the government opens special distribution counters to stabilise rates. A similar discussion with city‑based wholesale traders and retailers had taken place the previous day. The administration emphasized that illegal hoarding or creating artificial scarcity will be met with prosecution.

Context

The warning comes as Telangana faces a surge in staple food prices, a situation common when current harvests are not yet in storage and demand spikes. Legal deterrence is a standard tool used by Indian state governments to protect consumers from price gouging.