Business · India Bureau
Karnataka Cracks Down on PDS Rice Diversion Racket
State authorities have seized 565 tonnes of subsidised rice intended for public distribution, uncovering an alleged smuggling operation that diverted Food Corporation of India grain for illegal export to Africa through Chennai port. The contraband is valued at approximately ₹1.34 crore.
LSN India ·
Karnataka's food and civil supplies department has intercepted a significant cache of subsidised rice earmarked for the Public Distribution System, exposing what officials describe as an organised racket channelling FCI grain beyond India's borders.
The 565-tonne seizure represents a major breach in the state's food security mechanism, which relies on PDS allocations to supply affordable grains to vulnerable populations. Investigators allege that the diverted rice was destined for export markets in Africa, with Chennai port serving as the transhipment point for the illicit shipments.
The contraband rice carries an estimated value of ₹1.34 crore at current subsidised rates. State authorities have launched a formal inquiry to identify the network of officials, traders and intermediaries involved in the diversion scheme. Officials indicated that multiple FCI godowns and distribution points are under scrutiny as part of the ongoing investigation.
The case underscores persistent vulnerabilities in India's food grain supply chain, where coordinated efforts between state agencies and port authorities remain critical to preventing PDS commodities from reaching illegal export channels. Karnataka has pledged enhanced monitoring at storage facilities and distribution centres to prevent future breaches.