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Karnataka seizes 565 tonnes of subsidised rice meant for public distribution
Karnataka seized 565 tonnes of subsidised PDS rice worth ₹1.34 crore over an alleged racket diverting FCI grain for illegal export to Africa via Chennai port.
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Karnataka authorities have seized nearly 565 tonnes of subsidised rice meant for public distribution, worth ₹1.34 crore, in a three-day statewide crackdown on an alleged network diverting Food Corporation of India (FCI) grain for illegal export to Africa through Chennai port, the state government said on Friday.
Six criminal cases were registered under the Essential Commodities Act, 1981, and nine people were booked. The crackdown also led to disciplinary action against two government officials accused of failing to act against an illegal PDS rice storage facility operated by Ravi Traders in Bastawad village in Belagavi district.
Apart from 5,64,992 kg of rice, the department of food, civil supplies and consumer affairs also seized 24 vehicles worth ₹3.41 crore, taking the total value of the seized property to ₹4.75 crore, according to a statement issued on Friday.
The operation
Directed by food and civil supplies minister Rizwan Arshad, the operation involved the commercial tax department, agricultural marketing department, Karnataka state police and Karnataka state excise department.
Officials intercepted a truck carrying 35,000 kg of rice packed in 700 bags bearing the brand name “WoW” and the tagline “Rice for Africa” at the Attibele checkpost in Bengaluru Rural district.
Investigators identified the consignment, valued at ₹11.63 lakh, as rice procured from the FCI through the public distribution system (PDS).
Preliminary investigations indicated that Mandya-based Annapurneshwari Enterprises had bought FCI rice, processed it through light polishing at a mill and sold it to Madhya Pradesh-based Sailor Exports Limited for alleged illegal export to Africa through Chennai port.
Department officials found a discrepancy between the volume of rice traded by the entities and their recorded FCI purchases.
“The suspect entities traded up to 56,459.87 quintals of rice in the past two months (August 2026, September 2026) against a legitimate FCI purchase record of merely 5,000 quintals,” the department said.
The deputy director of the department in Mandya subsequently issued show-cause notices to the parties concerned. An FIR was registered in connection with the alleged export operation.
The largest seizure during the crackdown took place at Sri Banashankari Agro Processing Pvt Ltd in Lokur village of Kagwad taluk in Belagavi district. Officials seized 4,22,800 kg of PDS rice worth ₹98.67 lakh and impounded 19 trucks valued at ₹2.66 crore. The processing unit was sealed.
In another operation in Belagavi district, officials intercepted three trucks carrying 71,800 kg of rice allegedly being transported to Maharashtra. According to the department, the grain was being repackaged in branded bags for sale in the open market. Cases were registered at Nipani Rural and Malamaruti police stations against drivers from Latur, Satara and Hubballi.
In Vijayapura city, Jalanagar police seized an abandoned truck carrying 35,392 kg of rice worth ₹8.26 lakh after its driver allegedly fled during the raid.
Action against officials
Food and Civil Supplies Commissioner B Poornima suspended Hukkeri taluk food inspector Praveen Sagar and shirastedar L B Dange on Friday pending a departmental inquiry. The department said the officials were instructed to inspect the facility and initiate prosecution but allegedly released an impounded truck and its rice without registering an FIR or informing senior officials.
Arshad said enforcement would extend to government officials suspected of involvement or negligence, as well as private traders and companies.
“Strict legal action will continue unabated against all perpetrators, whether private smugglers, corporate exporters, or complicit public officials, until PDS rice theft is completely eradicated across Karnataka,” the statement quoted him as saying.
