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Tamil Nadu free rice scheme faces allegations of diversion, resale

Tamil Nadu politician Udhayanidhi has alleged that subsidized rice distributed under the state's free ration scheme is being polished and resold commercially at ₹30 per kilogram. The allegations also suggest beneficiaries are returning portions of the distributed rice in multiple locations.

LSN India · 24 October 2026

Tamil Nadu free rice scheme faces allegations of diversion, resale

Udhayanidhi has raised concerns about the implementation of Tamil Nadu's free rice distribution scheme, claiming that the grain meant for low-income households is being diverted for commercial purposes. According to the allegations, the rice is being processed through polishing and subsequently sold in the open market at retail prices around ₹30 per kilogram.

The politician's claims extend beyond mere resale, suggesting a pattern of rice returns across several locations in the state. This indicates potential systematic issues in how the beneficiary population is utilizing the distributed grains, or alternatively, problems in the scheme's distribution and verification mechanisms.

Tamil Nadu's free rice program, part of its public distribution system, aims to provide subsidized foodgrains to economically weaker sections of the population. The allegations, if substantiated, would represent a significant breach in the scheme's objectives and raise questions about oversight and accountability in the distribution process.

The claims underscore ongoing challenges in ensuring that welfare programs reach their intended beneficiaries without diversion or misuse. State authorities are expected to address these allegations and potentially strengthen monitoring mechanisms to prevent such practices.