After ministry nudge, FCI starts probe into paddy recycling in Odisha
The Food Corporation of India (FCI) has started joint physical verification of paddy in western Odisha due to reports of custom milled rice (CMR) recycling for the Public Distribution System (PDS). The verification follows allegations of corruption, with fictitious paddy purchases. Teams, in coordination with state officials, are inspecting mills in several districts, with videography and geo-tagging.
BHUBANESWAR: The Food Corporation of India (FCI) has begun a joint physical verification of paddy by associating teams of the state government in major rice mills in western Odisha districts where alleged massive recycling of custom milled rice has been reported to the central government.
The order for joint physical verification came in the wake of a direction from the Ministry of Consumer Affairs, Food and Public Distribution. The ministry acted upon a complaint about massive corruption in physical verification of paddy at millers’ points without taking photographic evidence of the stock for custom milling.
The informant is stated to have claimed that Rs 15 crore exchanged hands for the recycling deal which runs into thousands of tonnes of rice and involves several rice mills. Alleging fictitious purchase of paddy was shown for recycling rice into the PDS system, the complainant requested the food ministry for a joint verification by including the CBI.
The FCI purchases custom milled rice (CMR) from states at Rs 29 a kg for the central pool. The central government reimburses the entire food subsidy of the state for rice supplied to ration card holders under National Food Security Act and other schematic programmes including mid-day meal.
In an official communication to the general manager of Odisha region on November 8, 2024, a copy of which was accessed by The New Indian Express, executive director of the FCI zonal office, Kolkata said, “Joint PV (physical verification) should start immediately by associating teams of the state government. Joint PV of paddy should be conducted under videography with geo-tagging of the proceedings.”
As a measure of super check, at least three teams headed by category-I officers from regional office should be constituted and they may take up verification of at least 10 per cent of mills of the revenue districts having reasonable quantum of paddy.
“A team from zonal office will visit Odisha region and conduct super-check of at least 3 mills where PV has been conducted by the RO (regional office) teams. Any discrepancy found by teams should be dealt with as per extant of GOI/FCI headquarters direction and action in the matter should be taken promptly,” the letter said.
Meanwhile, the divisional office of FCI at Titlagarh constituted two teams each for Balangir, Kalahandi and Subarnapur district and one team for Nuapada district. Similar teams have been constituted for Bargarh and Sambalpur districts.
The teams have been directed to conduct millerwise physical verification of paddy/CMR stock of kharif marketing season 2023-24 in coordination with state government officials.
While approving the state government’s request for extension of paddy milling and delivery of CMR to the central pool by a month till November 30, 2024, the Food ministry requested the state government to check recycling of rice.
Calls and messages to the GM of FCI, Odisha region, Nihar Ranjan Pradhan did not elicit any response. Contacted, civil supplies officer of Sambalpur Ram Chandra Tudu said five teams have reached and will be visiting 46 rice mills for physical verification which he claimed is a “usual procedure” conducted every year.
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