Why the PDS grain drain is increasing political pressure in Andhra

The Yuvajana Sramika Rythu Congress Party (YSRCP), the previous ruling party in Andhra Pradesh, is accused by the Telugu Desam Party (TDP)-led National Democratic Alliance (NDA) government of transforming the Kakinada port into a hub of illegal activities. , and mainly rice smuggling.

“What happened in the last five years under the YSRCP regime has facilitated a smuggling mafia,” said Nadendla Manohar, Andhra minister for civil supplies, food and consumer affairs.

Manohar, claiming grain flow through Kakinada port, in a specially convened press conference on December 1, said, “Chief Minister N. Chandrababu Naidu and Deputy Chief Minister Pawan Kalyan are making every effort possible to curb the illegal export of PDS (Public Distribution System). ) rice from the port of Kakinada. The PDS rice is meant to satisfy the hunger of 14.8 million ration card holders, and Rs 12,800 crore is being spent on this project by the Center and the state government.

A worried Naidu, in a cabinet meeting on December 3, presented tough measures to check rice smuggling. Apart from appointing a senior IPS (Indian Police Service) officer as the security chief of Kakinada port, the state government plans to treat rice smuggling as an organized crime. Actions against warehouse owners are also being considered. This will be after an investigation by the state Department of Criminal Investigation details the findings.

An official committee has recommended strict action against 28 companies involved in booking a West Africa-bound cargo ship, the Stella L Panama, to allegedly illegally export PDS rice. Last week, 640 tonnes of PDS rice were seized from the ship anchored at Kakinada port. The ship has been detained pending the completion of an investigation into the exact origin of the various rice shipments in its holds.

Pawan Kalyan, who heads the Jana Sena Party (JSP), visited the Kakinada port on November 29, despite several obstacles, and took a selfie in front of the cargo ship. This was two days before Manohar revealed the details of the scam.

On December 2, Kalyan had a two-hour meeting with Naidu, during which he reportedly explained how the port had become a major hub for rice smuggling and that a complex network of illegal rice trade was operating across the state.

It appears that PDS rice siphoning has become a constant crime in Andhra, carried out by a vast network that is difficult to dismantle. Manohar said a deep-rooted conspiracy was at play involving influential people, including senior police officials and public representatives.

Manohar said 10 million tonnes of rice, worth Rs 48,537 crore, was exported from Kakinada port in the last three years, and even central rice supplied to the poor during the Covid pandemic -19, worth Rs 6,300 crore, had been misappropriated.

“The YS Jagan Mohan Reddy government launched 9,260 mobile delivery units, worth Rs 1,600 crore, to facilitate illegal transportation of PDS rice, despite operating 29,000 fair price shops in the state ” said Manohar.

“For the last five years, no one expressed concern, which led to the conspiracy spreading from the grassroots to the stocking points at the Mandal level. PDS rice was transported illegally from Chittoor and Srikakulam to Kakinada through green channels,” he charged.

In the last three years, 2,20,289 tonnes of rice were exported from Gangavaram port, 2,351,218 tonnes from Krishnapatnam port and 3,802,000 tonnes from Visakhapatnam port. The largest export of 13,118,346 tonnes of rice came from Kakinada port, the minister said.

Manohar alleged that YSRCP leaders Kurasala Kannababu and Dwarampudi Chandrasekhar Reddy were responsible for tarnishing the image of Kakinada and the state. “Despite the establishment of 1,000 checkpoints across the state to curb illegal export of PDS rice, smugglers are finding alternative routes to continue their operations from Kakinada port,” he said. conceded.

Rice and rice products are not on the list of banned exports, while PDS rice constitutes a separate category, which is why it is smuggled in processed form. On June 28, authorities sealed 13 godowns containing 51,427 tonnes of rice in Kakinada. After testing, 25,386 tonnes of rice were identified as PDS. The seized PDS rice was released only after obtaining a bank guarantee, as directed by the High Court. An official committee was constituted and the district authorities were directed to take action against PDS rice smugglers under the Essential Commodities Act.

“The more we delve into the issue, the more new facts emerge,” Manohar said. According to a survey conducted by the minister, around 60 percent of PDS card holders eat fine rice and do not buy their supplies from stores. The middlemen bought PDS rice for Rs 11 per kilo, sold it to big dealers for Rs 29 per kilo and exported it for Rs 43 per kilo. Following this, a criminal case was registered against 13 companies for procurement and smuggling of PDS rice.

Terming the PDS rice smuggling as a national-level scam, Andhra Congress president YS Sharmila, who is Jagan Reddy’s sister, demanded a probe by the Central Bureau of Investigation. In a post on social media platform X, the Congress leader alleged the involvement of people’s representatives and civil servants in the PDS rice scam.

These allegations are a serious setback for the YSRCP, which is in denial mode. “If PDS rice smuggling cannot be stopped, it is the failure of the state and the ineffectiveness of the coalition government,” said former YSRCP minister Ambati Rambabu.

Analysts say that while it is the responsibility of the state to bring violators to justice and it is a tall order to stop the scam, Pawan Kalyan’s visit to the port de Kakinada was part of the JSP’s strategy to become a major political player before the next legislative elections. .

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