KAKINADA: A large-scale scam involving the Public Distribution System (PDS) has been uncovered at Rajapudi village in Jaggampeta mandal of Kakinada district on Sunday, where essential rice stocks meant for the poor were illegally diverted for profit.
Acting on a tip-off, Civil Supplies Officer Rudraraju Satyanarayana Raju and Assistant Officer T Prasanna Lakshmi inspected Ration Shop No. 0418015 and discovered only 265 kg of rice instead of the mandated 5,255 kg. The rest had reportedly been replaced with rice chaff, leading to the shop’s immediate seizure.
Investigations revealed that ration dealers had been selling PDS rice to middlemen at Rs 25 per kg, instead of distributing it to beneficiaries. The scam is now suspected to be part of a larger network exploiting the PDS system.
Earlier, on May 7, civil supplies officials intercepted a lorry carrying 28.6 metric tonnes of PDS rice worth Rs 29 lakh near Thammayyapeta village on the National Highway near Annavaram.
The rice, intended for Visakhapatnam Port, was being transported illegally.
The scam appears to extend beyond state borders, with allegations of Telangana’s PDS rice being illegally exported via Kakinada Port.
Following a Philippines-bound rice export initiative by Telangana Minister N Uttam Kumar Reddy, 1,320 MT of PDS rice was seized from cargo ship Stella L Panama at Kakinada Port on January 5, 2025.
Authorities suspect a nexus involving DMU vehicle operators, rice millers, and exporters, who allegedly bought rice from ration card holders at Rs 15 per kg, repackaged it, and exported it for profit.
Despite crackdowns, reports suggest illegal exports have resumed, prompting intensified investigations amid growing public outrage.