District Collector N Tirumala Nayak issued an order to inquire into the incident, Civil Supplies Officer (CSO), Kandhamal, Bibekananda Kerkata said.
Kerketa denied that the wheat was meant for public distribution system, but said the truth would be known only after an investigation.
The local villagers claimed that the wheat was not for human consumption and started collecting the grains from the water for fodder purpose.
Police suspect that the damaged wheat might belong to integrated child development scheme (ICDS) of the state government, sources said, adding that inquiry was on.
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