Massive Ration Scam Unearthed: ₹69,000 Crore Worth of Subsidized Food Grains Missing
Report Reveals Alarming Levels of Corruption in India’s Public Distribution System
A shocking revelation about India’s rationing system has surfaced. A recent report by the Indian Council for Research on International Economic Relations (ICRIER) disclosed that a staggering 28% of subsidized food grains under the Public Distribution System (PDS) fail to reach beneficiaries. The diverted food grains, valued at approximately ₹69,000 crore annually, are suspected of being sold on the open market or exported illegally.
Key Findings of the Report
- The report highlights that around 20 million tons of rice and wheat meant for 814 million beneficiaries vanish each year.
- The diversion results in massive government losses, raising questions about the efficiency and monitoring of the PDS.
- States like Arunachal Pradesh, Nagaland, and Gujarat rank highest in instances of ration corruption, while Bihar and West Bengal have shown significant improvements in reducing diversion rates.
Causes and Concerns
Subsidized food grains often go missing during the transit from Food Corporation of India (FCI) warehouses to ration shops. Issues such as torn sacks, inadequate infrastructure, and poor transportation systems are identified as contributing factors.
ICRIER’s Infosys Chair Professor Ashok Gulati called the situation “baffling,” speculating that much of the lost food grain is either sold on the open market or exported.
Structural Issues in PDS
The report criticized the PDS for its susceptibility to corruption and inefficiency. Despite improvements, the problem persists:
- In 2011-12, 46% of subsidized grains were lost. This figure has dropped but remains significant.
- Technological interventions like the introduction of Point of Sale (PoS) machines in ration shops since 2016 have reduced fraud but not eradicated it.
- Linking Aadhaar with ration cards is a step in the right direction, but experts call for stricter monitoring and structural reforms.
Regional Analysis
- High Corruption States: Uttar Pradesh reported 33% grain theft, while Himachal Pradesh, Uttarakhand, and Maharashtra also showed high rates of diversion.
- Improved States: Bihar reduced its corruption rate from 68.7% to 19% between 2011 and 2023. West Bengal also showed significant progress, with rates dropping from 69.4% to 9%.
Government Response
The central government is aware of the ongoing corruption and has initiated a CBI probe into the issue. Investigations and raids are being conducted to break the chain of malpractices in the PDS.
Global Context
India’s PDS is the largest in the world, catering to over 800 million citizens. Despite its scale, the system’s inefficiencies undermine its effectiveness. Experts stress the need for structural overhauls and vigilant oversight to curb corruption and ensure food security for the needy.