Great Indian Rice Milling SCAM: CAG Blows The Lid Off Scam Worth 1 Lakh Crores!

The Logical Indian

November 26th, 2015 / 1:19 PM

News Source: thewire Image Source:  Land Rover Our Planet/Flickr

Rice mill owners are minting millions taking advantage of skewed pricing policy by the Governments both at the centre and the state. They make thousands of crores rupees by the sale of paddy by-products left over from the rice they process for the public distribution system (PDS).

The mill owners get these by-products free of cost, these include bran, husk, broken rice and nooks which enjoy a lucrative market – giving millers high returns on something which they do not have to spend a single rupee to buy.

The Wire reported that the CAG audits show that ‘The Rice Scam’ costs Rs 10,000 crore loss a year to the tax-payers.
Most of the mill owners are politicians or have political connections and in ten years span the cumulative losses could be more than Rs. 1 lakh crores.

Both Central and state procurement agencies buy the paddy from farmers at fix prices and supply it to mills for processing. When a mill is given 100Kg of rice it returns 67 Kg of processed rice back. So they get to keep around 32-33 kg of by-products like husk, rice bran and broken rice.

With the time market for by-products has been flourished and become very lucrative. Paddy by-products are used in a wide range of industries: power generation, solvent plants, pharmaceuticals, brick kilns and breweries.

Judging by the numbers we can put ‘Great Indian Rice Milling Scam’ alongside high-profile and visible 2G and coal scams, but this misses the media glares and prime-time debates.

We hope soon both center and state governments wake up to this and see the exchequers’ hard earned thousands of crores of rupees are drained by mill-owners. And make a fool-proof system and implement right pricing policies, which can benefit the farmers and common mass not just a few mill owners.


Contributors

Edited by :

Share your thoughts..

Related Stories

CAG Report Finds Financial Irregularities Worth Rs 1,179 Crore In 19 Ministries

Income Tax Raid Finds UP Govt Engineer With Property Worth 200 Crores And Two Families

Bad Loans By Wilful Defaulters Worth Rs 516 Crore Written Off In First Half Of FY18

My Story: I Asked The Nurse To Pick My Leg Off The Floor Since It Seemed To Have Fallen Off

Farm Loans Worth Rs. 36,359 Crore Waived Off: UP Govt’s Big Relief To Farmers

Motor Vehicle Inspector Arrested In Telangana

Inspector Arrested In Telangana For Illegally Acquiring Luxury Cars, Property Worth Crores As Assets

Latest on The Logical Indian

News

Journalist Arrested For Satire On Konark Temple, Odisha Govt Passes Privilege Motion Demanding Action

Get Inspired

Rats Sniff Out Landmines And Save Thousands Of Lives In Africa & Asia, Also Detect Tuberculosis

News

WB: 2 Youths Died As Police Allegedly Open Fired At Students Protesting Urdu Teachers’ Recruitment

My Story

My Story: “Carrying Kirpans Is Even By The Constitution Of India But Why Do I Have To Explain It Everytime?”

Get Inspired

Pune: Hindus, Muslims Come Together To Hold Ganesh Chaturthi & Muharram Proceedings In Same Pandal

News

UGC Orders Universities To Celebrate “Surgical Strike Day In Befitting Manner”, Javadekar Says It’s Not A Compulsion

x

Stories that deserve attention, delivered to your inbox!

Handpicked, newsworthy stories which deserve the attention of a rational generation.