Report: Black Marketers Pilfer 43 Lakh Kg of Ration Rice Meant for Common People Over Four Years in Kerala

A report indicates that 43 lakh kilograms of ration rice, intended for distribution to common people through ration shops across the state, has been pilfered and resold by black marketers over a period of four years. This fraudulent activity is reported to have occurred between June 2021 and August 2025. The Manorama daily cites information from investigation reports by the Food and Public Distribution Department and various other offices. The report also states that officials have recovered 75,000 kg of rice stored in godowns for smuggling and another 1.30 lakh kg from the already trafficked stock.

The rice smuggled from godowns was handed over to black marketers. Car owners and officials involved in the scheme reportedly profited lakhs from this operation. Subsequently, this rice was polished and supplied to companies, where it was mixed with premium varieties and sold as branded rice in the market at Rs 45.

The stock shortages were discovered during inspections conducted by District Supply Officers, the Civil Supplies Department’s Special Squad, and Supplyco Vigilance in Supplyco’s godowns, which operate under the National Food Security Act (NFSA). A section of officials allegedly aided the fraud by failing to record daily stock receipts in the registers. The scam was reportedly orchestrated by a nexus of officials, traders, and intermediaries.

Various methods are employed to pilfer ration rice, ranging from manipulating weight to siphoning rice directly from sacks using pipes. A contractor reportedly revealed that 2-3 kilograms of rice are extracted from each sack using a 1.5-inch sharpened pipe.

The contractor further disclosed that the siphoned rice is filled into separate sacks and then loaded onto the same vehicles used for door-to-door ration distribution. The FCI supplies 205 sacks to Supplyco godowns, five of which are meant to compensate for weight discrepancies. This compensatory stock, along with the rice siphoned from individual sacks, is then smuggled out alongside the legitimate ration store deliveries, using bills that document the weight of the rice destined for the shops.

These revelations of massive fraud emerge even as the government repeatedly asserts that Kerala’s public distribution system is flawless.