"You are aware that...Telangana Excise Special Task Force (STF) has arrested several persons in connection with possession and sale of high-end narcotics," Excise Commissioner R V Chandrvadan said in a letter to education officials.
"Investigation....Has revealed certain disturbing facts involving the student community in particular," he said.
Among other things, colleges should be asked to "sensitise" the teachers and students about hazards of substance-abuse, and areas around colleges, especially shops, should be monitored to see if drugs are being sold, he said.
According to the STF, the racket which was busted in the city catered to nearly 1,000 customers, including students of schools and colleges.
The gang sold high-end drugs such as lysergic acid diethylamide (LSD) and methylenedioxy-methamphetamine (MDMA), the STF has said.