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Rice meant for poor ends up in black market

Karnataka launched flagship 'Anna Bhagya' scheme to supply 30 kg of rice at Re 1 per kg to BPL families

BS Reporter Mysore
Seizure of Rs 5 lakh worth of ration rice last Sunday by the Mysore city police has unearthed black-marketing and smuggling of rice meant to be distributed to the poor and weaker sections in Mysore district.City crime bureau staff seized 200 bags of 50 kg each from a lorry in N R Mohalla limits in the city and arrested a loader, in a joint operation along with the Food and Civil Supplies Department officials.

This led to the seizure of another 239 rice bags of 50 kg each following a raid on a godown near Old Kesare. They also seized empty gunny bags, a bag stitching machine, weighing machines and other articles. In all, the 439 bags of rice is estimated at Rs 5 lakh.
 

The police are also looking out for a Mandi Mohalla resident, said to be the kingpin behind the illegal  rice transportation.

The seizure of over 2,000 kg ration rice brings to focus the prevalent large-scale clandestine operation in leakage of subsidised rice made available to the low income group card holders at Rs 1 a kg through the fair price shops. The pilferage, in small quantities or large quantities and selling of the same at a higher price or smuggling it out of the state’s borders.

The Karnataka government launched its flagship ‘Anna Bhagya’ scheme to supply 30 kg of rice at Rs 1 per kg to families living below the poverty line (BPL) across the state in July last year, adding an additional burden of Rs 4,300 crore a year to the exchequer.

Around 9.83 million BPL cardholders are said to be benefiting from the scheme and they receive subsidised rice through a network of 21,024 fair price shops across the state. While a single-member family is eligible for 10 kgs, a family of two members gets 20 kg and a family of three or more 30 kg rice per month.  

Though the intentions of the government through the scheme was to ensure food security is good, it is no secret that large quantities of rice are re-routed to the open market for a good margin. A network of black-marketeers is behind the scam, it is said.

These people buy the Rs 1 rice at a tempting Rs 14-16 directly from the card-holders and after pooling the same, sell it at a higher price, thus making windfall profits. Before selling it in the open market, they repolish the rice and fill it up in their own gunny bags, it is reported.

This generally takes place in the rural areas where such operations can be done easily and smoothly, at times in connivance with fair price shop operators. Bulk quantities are smuggled out to the neighbouring states.

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First Published: May 02 2014 | 9:44 PM IST

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