Karnataka: Rice racket on the rise amid Annabhagya shortage across state
The shortage of Annabhagya rice across various state districts has led to a surge in the illegal trading of ration rice, particularly in paddy-producing regions such as Ballari, Vijayanagara, Koppal and Raichur. Ballari recorded the highest number of illegal PDS rice trading cases in the state.
The govt’s response to the rice shortage includes distributing 5 kg of rice and providing cash for an additional 5 kg statewide. The distribution pattern showed 5 kg in Feb, with the remaining allocation this month, bringing the total to 15 kg.
“When only 5 kg of rice was being distributed, smugglers were illegally collecting it from BPL cardholders. Now that 10 kg is being distributed, this network is fully operational,” said Prakash H, a Koppal-based social activist. The illegal activities of collecting, processing, and selling PDS rice at higher prices i have ncreased across these four districts.
On March 19, officials in Ballari seized substantial quantities of illegally stored rice from three locations, including Kaul Bazar and Siruguppa police jurisdictions. Officials recovered 211 quintals from Siruguppa and over 50 quintals from Kaul Bazar. Two ration shops in Ballari city were closed for alleged collaboration with illegal traders.
A senior food department official, speaking anonymously, revealed: “In the eight months from April 2024 to Feb 2025, a total of 346 cases of illegal rice storage and sale were identified in the state, with 285 cases formally registered. To date, 308 persons were arrested, and 8,42,711 kg of rice valued at Rs 14.17 crore was confiscated.”
Sakina, deputy director of the food and civil supplies department in Ballari, stated 37 cases of illegal rice trade this year. Officials seized 1,15,000 kg of rice worth Rs 34.28 lakh, arrested 55 persons, and impounded 25 vehicles.
A senior police officer from Ballari suggested that unreported cases could be four to five times higher, noting influential persons’ involvement in this trade worth hundreds of crores of rupees.
“Illegal rice traders are acquiring rice from the PDS system at low prices, polishing it, and then selling it to rice mills, hotels, and on the black market for Rs 40 to Rs 60 per kg. However, when these criminals are apprehended, we often receive calls from powerful people or threats from those orchestrating this operation,” he explained.
SA Gafar, a Koppal social activist, noted that these districts’ primary crop being paddy, combined with lower PDS dependence, makes illegal rice trading profitable. He suggested diversifying PDS offerings beyond rice as a potential solution.
This article has been republished from The Times of India.