The rice, originally meant for the Public Distribution System (PDS), was worth Rs 4.50 lakh, said Jaggaiahpet Tehsildar C Narasimha Rao.
He added that the rice bags had markings of Telangana and therefore that state's vigilance and enforcement teams were also part of the raid that led to the seizure.
The seized rice has been sent to the civil supplies godown and the matter had been brought to the notice of the Joint Collector, Tehsildar M Someswara Rao said.