BRS alleges rice export scam to Philippines; Uttam Kumar denies charges, calls deal ‘historic’

Hyderabad: A heated exchange erupted in the Telangana Assembly on Monday as the Bharat Rashtra Samithi (BRS) alleged a major scam in the export of rice to the Philippines and demanded a House Committee probe.

However, the state government strongly denied the charges, calling the agreement ‘historic and farmer-friendly’.

Minister for Civil Supplies, Uttam Kumar Reddy, characterised the initiative as a ‘visionary plan’ to liberate Telangana from its dependency on the Food Corporation of India (FCI) and establish ‘Telangana Rice’ as a premium international brand alongside exports from Thailand and Vietnam.

BRS claims tender process was not followed

Raising the issue during Question Hour, BRS Deputy Leader T Harish Rao accused the government of serious irregularities in the rice export deal and urged the Speaker to constitute a House Committee to investigate the alleged scam.

He questioned the lack of transparency in the process, asking why tenders were not floated and why a private firm was reportedly awarded the export contract on a nomination basis.

Harish Rao also flagged the appointment of Premchand Garg as an advisor, claiming that he is facing cases registered by central agencies, including the Enforcement Directorate (ED).

Questions over stock, logistics costs

The BRS leader further sought clarity on whether 7,500 tonnes of rice were still lying at Kakinada port and if the government was incurring additional expenditure towards warehousing and handling charges.

Alleging financial losses to the state, he maintained that the entire episode pointed to a scam and reiterated the demand for a comprehensive inquiry.

Government denies charges, calls deal ‘historic’

Civil Supplies Minister N Uttam Kumar Reddy rejected all allegations, asserting that there was no connection between the rice export agreement and Premchand Garg.

He dismissed the demand for a probe panel as a ‘deliberate bid to discredit’ the government’s success.

Reddy alleged that Rao himself had previously approached the Civil Supplies Commissioner to recommend a specific individual for the export process. “If a House Committee is to be instituted, it must be for the purpose of examining Harish Rao’s own deals during his tenure,” the Minister retorted.

He said the Telangana government had entered into a ‘historic agreement’ with the Philippines government, which would enable direct export of rice while eliminating middlemen.

According to the minister, the initiative positions Telangana as a growing player in the global rice market and ensures better returns for farmers.

Record-breaking returns, says govt

Claiming the success of the Telangana Rice Mission, the Minister shared data regarding a recent Government-to-Government (G2G) deal with the Philippines. The specifics of the agreement include:

Export Volume: 22,750 metric tons.

Price Secured: Rs 3,600 per quintal — the highest price ever recorded for this variety in any Indian export deal.

Comparison: This far surpasses the FCI’s open market auctions in Andhra Pradesh, which failed to find buyers even at Rs 3,000, and Chhattisgarh’s average of Rs 1,800–Rs 1,900.

Loss Aversion: The Minister noted that this timely international deal saved the state a potential loss of Rs 13 crore on the consignment.

Managing the ‘massive storage burden’

Despite the push for exports, Minister Reddy reaffirmed the government’s commitment to purchasing ‘every last grain’ from local farmers. He revealed that the Civil Supplies Department currently manages a staggering 86 lakh metric tons of rice in storage.

“The Government of India has committed to taking only 54 lakh metric tonnes through the FCI this year,” Reddy explained. “Yet, we have purchased 72 lakh metric tonnes from Kharif farmers—the highest ever for a Kharif season—to ensure no farmer is left without a Minimum Support Price (MSP).”

The Minister said that by directly engaging international buyers at a G2G level, Telangana is successfully turning a storage crisis into a sustainable export strength, effectively managing financial pressures while maximising returns for the state’s agricultural sector.

Rs 3,500 crore allocated for bonus on fine rice

Uttam Kumar Reddy assured the House that the government would procure every grain of paddy from farmers at the Minimum Support Price (MSP) during the Rabi season.

He also reiterated the government’s commitment to provide a Rs 500 bonus per kg on fine rice, adding that Rs 3,500 crore has been allocated for this purpose.

BRS protests in Assembly

Unsatisfied with the minister’s response, BRS members staged a protest in the Assembly, accusing the government of evading key questions and failing to provide clear answers on the alleged irregularities.

The issue led to tense scenes in the House, highlighting sharp differences between the opposition and the treasury benches over the rice export policy.