PDS rice diverted for profit, Middlemen buy rice for Rs 7, sell to rice mills for Rs 12

Hyderabad: PDS rice meant for below Poverty Line (BPL) families is being diverted on a large scale to the black market in violation of the Essential Commodities Act. In the past few days, officials of the Vigilance and Enforcement Directorate have seized huge quantities of rice meant for the public distribution system in the state. Vigilance director general R.P. Thakur said the department has launched a crackdown against the PDS rice diversion racket in the state.

During investigation it was found that middlemen purchase PDS rice for Rs 7 to Rs 8 per kg from dealers and sell it to rice mills for Rs 12 a kg. The mills then polish the rice and sell it for around Rs 20 a kg depending on quality. Guntur and Nalgonda were found to be the key centres of the racket as there are several rice mills here.

On March 9, Vigilance officials intercepted two vehicles transporting PDS rice from Vinukonda in Guntur to Mallepalli in Nalgonda district. Another lorry was found transporting PDS rice from Adigoppula to Halia. Officials seized the stock, worth Rs 4.13 lakh.

In the second case, Vigilance found PDS rice at Prajahita Rice Mill in Bapatla. The suspect, V. Sudheer Kumar, confessed that he had purchased PDS rice from white card holders in and around Bapatla town for Rs 7 per kg. and had brought it to the rice mill to sell for Rs 12. The owner of the mill, G. Venkateswaralu confessed that he had been purchasing PDS rice from Mr Kumar.

“On inspection we found that they were recycling the PDS rice in violation of the Act,” said an officials. Stock worth Rs 29.71 lakh was seized.

In another case, Guntur Vigilance intercepted a vehicle that was transporting rice to Mandapet of East Godavari district for diversion to the black market. Rice worth Rs 4.37 lakh was seized and handed over to Pedakakani police. In yet another case, Rs 1.53 lakh worth of PDS rice was seized.