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Last Updated Monday November 23 2020 07:13 PM IST

Hoarding suspected as rice meant for PDS pile up with millers

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rice-mill

Kochi: In a suspected case of hoarding, about half of the total 34,000 metric tonnes of matta variety of rice meant for Public Distribution System (PDS) is found to be lying in different rice mills across the State after wholesale ration dealers refused to collect the stock. 

Though the stock meant for distribution in February was supposed to be collected by January end, the dealers have so far picked up only 59.64 per cent of the rice procured and processed by the Kerala State Civil Supplies Corporation (Supplyco) under the paddy procurement scheme. That means as much as 13,721 tonnes of rice, i.e., 40.36 per cent of the total stock, have not claimed by the dealers even after making payment. 

It is learnt that the Supplyco is planning to file a complaint with the Food Corporation of India (FCI) against the erring wholesale dealers. 

The unprecedented trend has triggered speculations that the dealers were trying to jack up their prices by creating an artificial scarcity of rice and diverting the commodity to the black market ahead of the assembly elections. 

Rice meant for PDS is distributed through mills in the seven districts of Ernakulam, Pathanamthitta, Malappuram, Thrissur, Palakkad, Kottayam and Idukki. In the remaining seven districts, the wholesale ration dealers purchase the rice directly from FCI warehouses.

The district-wise percentage of the uncollected rice is: Ernakulam (52.76), Pathanamthitta (50.01), Malappuram (45.84), Thrissur (45.14), Palakkad (32.61), Kottayam (31.66), and Idukki (2.37). 

The Supplyco had issued the releasing order for the month of February several weeks ago after rationing out the stock to the wholesale dealers. 

The procured rice is being distributed among APL cardholders (10 kg for Rs 8.90 per kg), Antodaya Anna Yojana beneficiaries (35 kg for Re 1 per kg), and the other BPL cardholders (25 kg for Rs 2 per kg). The wholesale dealers purchase the rice from the authorised mills by paying Rs 8.40, 45 paise, and Re 1, respectively. Lack of supply of rice will cause shortage in the ration outlets in these seven districts in February.  

The reluctance to collect the stock despite making full payment is seen as an attempt to derail the rice distribution scheme. The dealers will be able to collect the stocks later and sell it at a higher price while the mill owners can sell it as branded rice by charging more. As the payment was already made, the government cannot take over the stock to distribute it through ration outlets. 

The Supplyco is now looking forward to the FCI to interfere and initiate action against the dealers. 

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