Dealers are offering to buy back the rice that is being given to the poor for free through ration shops by the Andhra Pradesh government. They have started a new business of buying the rice cheaply and selling them for higher prices.
Ration dealers in coastal districts have taken a new role. They are buying rice directly from card holders for Rs. 5 per kg. The beneficiaries do not like the rice given through fair price shops. They used to sell the rice to the retailers for Rs. 10 per kg. The coastal district ration dealers have entered the scene and now the beneficiaries are selling the rice to the same dealer.
Before Corona, the beneficiaries who bought rice from the ration shops used to sell it to the retailers at Rs. 10 per kg. After Corona, the Centre and State governments gave free rice two times. As a result, the retailers also reduced the prices. The officials have found out that the rice was purchased at Rs. 8 per kg in rural areas and Rs. 5 in urban areas.
Shocking facts emerge
Recently, civil supplies department officials raided rice mills in Krishna district. Shocking facts were revealed in the raids. The officials found that rice was being supplied directly to the mills from the ration dealers. Most of the mills polish the ration rice and supply it again to the civil supplies department at Rs. 25 per kg. The officials disclosed that the state was facing huge losses because of recycling of the rice. Apart from this, the recycled rice is deficient in vitamin B, which can make people sick, the official said.
Expenditure of Rs. 6,500 Crore per annum
The government has to spend Rs. 6,500 Crore annually to supply rice to the 1.40 Crore card holders in AP. The rice has to be purchased for Rs. 25 per kg and stored in warehouses for consumption throughout the year. Money is spent on a large scale for transportation and supply to people. Altogether, the government is spending more than Rs. 30 per kg of rice to send it to the beneficiary.
It is ironical that many do not consume the rice, and prefer to sell it to sharks who buy from them for cheap. Even though government officials are aware of this, the scheme is continued to avoid resentment from the people. Officials believe that if the government can give the money directly to the beneficiary, they can buy the best rice in the market and government money will not get wasted.
Cash transfer for ration
The government is gearing up for cash transfer instead of ration rice. It was initially undertaken as a pilot project in Srikakulam district, where it hopes to seek public opinion and implement it across the state. Though the government desired to give super fine rice to the people, it realised that this was not possible in reality. That is why if the government transfers cash, the beneficiaries will have the opportunity to buy super fine rice on their own.
