The Rs 1-a-kg rice scheme is turning out to be a money-spinner for people as the rice is being sold at a premium of Rs 12 per kg to traders and petty hoteliers for preparing idly, dosa and other food items. In Warangal, some traders are touring villages offering one kg of wheat for two kg of ration rice.

“Some people sell the susidised rice to traders. This was going on even when the rice was sold at Rs 2-a-kg. Quality-wise the rice is not so good, and is good only for making idlis,” A. Anjamma (name changed) a self-help group member of Medak said. The Rs 1-a-kg rice scheme kicked off controversy when the Sangareddy Congress MLA Jagga Reddy slapped a person for complaining about the poor quality rice supplied under the scheme.

Chief Minister N. Kiran Kumar Reddy, who launched a Rs 2-crore publicity blitz to promote his pet scheme, said that the scheme was aimed at providing food to the poor. The government is supplying 4 kg rice per head and a maximum quantity of 20 kg a family under the scheme. Former finance minister Yanamala Ramakri-shnudu vouches for the poor quality of the rice and the fact that it is being resold. “It’s happening in East Godavari district too. Due to poor quality many families are not using the rice. They are selling it to traders,” he said. However, the minister for civil supplies, Mr D. Sridhar Babu, says that the quality of the rice supplied to the poor under the `1-a-kg scheme is good, and that some people were deliberately carrying out a campaign against it.