In response to serious allegations regarding the superfine rice tenders, the Congress government has taken corrective measures. Civil Supplies Minister Uttam Kumar Reddy announced the cancellation of tenders for superfine rice.
Recently, the Civil Supplies Corporation had invited tenders for the procurement of 2.20 lakh tonnes of rice for the mid-day meal scheme and Gurukuls. Four companies submitted bids, but allegations of collusion arose as these companies quoted nearly identical prices, differing by only 10 paise and averaging Rs. 57 per kg. This price was significantly higher than the market rate of Rs. 42-45 per kg.
Leaders from the BRS and BJP, including BRS Working President accused Civil Supplies Minister Uttam Kumar Reddy and top department officials of involvement in a Rs. 330 crore scam. Due to mounting pressure from opposition parties and public outcry, the government cancelled the tenders.