Andhra Pradesh: Big scam in the Rice Schemes to BPL Families
June 4, 2026
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Home Bharat

Andhra Pradesh: Big scam in the Rice Schemes to BPL Families

As per the available information from the State Government, the ration is provided to 1.45 crore families in the State as beneficiaries below the poverty line, out of which 89,24,640 families of 2,67,10,659 individuals have been covered under the National Food Security Act (NFSA) for PM Gareeb Kalyana Yojana

Dinakar LankaDinakar Lanka
Nov 28, 2022, 11:20 am IST
in Bharat, Andhra Pradesh, Opinion
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I intend to pose the following questions for the CM YS Jagan-led YSRCP Government in the State of Andhra Pradesh to understand the truth and facts around the implementation of the National Food Security Act in the State these are, How many houses in the State? How many people live in each household on average? What is the actual number of people below the poverty line in the State? How many rice ration cards are in the State? According to the Union Government guidelines, how many of them are under the National Food Security ( NFSA ) Act? And How many additional ration cards in addition to the NFSA have been given by the State Government? Still, How many eligible poor people in the State with no ration cards when such a large scale of cards are already issued?

We gathered the appropriate Information obtained through the Right To Information Act as a reply to the queries raised on the details of the PM Gareeb Kalyan Yojana pertinent to the number of eligible cards and the number of beneficiaries in the State under the NFSA, along with the details of the Rice received from the Union Government for the last seven phases consists of 21 months.

As per the available information from the State Government, the ration is provided to 1.45 crore families in the State as beneficiaries below the poverty line, out of which 89,24,640 families of 2,67,10,659 individuals have been covered under the National Food Security Act (NFSA) for PM Gareeb Kalyana Yojana. They have been receiving free Rice of 5 Kg per month for each individual from the Union Government for the last 21 months in addition to the subsidised Rice in the Ration Shops. In addition, the remaining 56 lakh families, about one crore sixty lakh people, are being given ration by spending the state government funds as per the information from the State Government, which has resulted in The Civil Supply Corporation having already borrowed 31 thousand crores.

According to the latest RBI report, 78.80 lakh people live below the poverty line in the State as per 2011-12 prices and 2.39 crore as per 2004-05 prices. But, Data reveals the facts as per the 2021-22 census, the population of the State is about Five Crore Thirty Lakh people with an average of 3.9 individuals per family, which means that the total number of households is only One Crore Thirty-Six Lakh only. But the State Government has been showing Four Crore Twenty Five Lakh beneficiaries of One Crore Forty-Five Lakh Families eligible for Free and Subsidised Rice from the Central and State Governments. After examining the facts, we can identify a pattern of corruption in accounting for households and individual beneficiaries receiving subsidised Rice.

PM Gareeb Kalyana Yojana has been implemented since Corona Lock down period till date in 7 phases in the State of Andhra Pradesh as a part of the National Scheme, in the first three phases, which commenced from April 2020 to June 2021 assisted 1,34,115 metric tons in each stage. The fourth to sixth phase, from July 2021 to September 2022, helped 1,34,110 metric tons each step by the Union Government. Now the Central Government is assisting the free Rice for beneficiaries free Rice for the seventh consecutive phase. At the beginning of the sixth phase, the State Government had yet to distribute the Rice to the beneficiaries, which the Union Government sent.

After a warning from Union Minister Piyush Goyal, State Government came down to spread the PMGKY free rice to the beneficiaries; people are closely watching the Jaganna Government, which is trying to criticise the Central Government through the people for not providing Rice to the beneficiaries on time. It is essential to note that 62,05,788 metric tonnes of Rice have been assisted by the Central Government from 2019-20 to 2022-23 as a ration to the BPL families, out of which the state government has distributed only 56,39,824 metric tonnes. It means that 5,65,964 metric tons are not known piglets that have swallowed them. But, in 14 states in our country, more quantity of Rice has been distributed to the people than what has been assisted from the Centre, but the situation is the opposite in Andhra Pradesh.

Under the Union Government’s Gareeb Kalyan Yojana, Rice worth Rs 1,07,635 crore assisted the entire country for free in 2020-21. In which Andhra Pradesh’s share would be Rs 4,068 crore, the Rice worth Rs 1,30,560 crore had given for free to the entire country in 2021-22, Andhra Pradesh’s share would be Rs 5,309 crore and in 2022 and free Rice worth 39,996 crores have given to the whole country till 12 July 2022, Andhra Pradesh’s share has been 510 crore rupees. Even though thousands of crores of valuable Rice have been provided for free to Andhra Pradesh, the deserving people still suffer due to the flawed system in the State with corrupt practices.

Regularly, the Union Government pays a subsidy of Rs 36 per kg of Rice to 2,67,10,659 people of our State under the National Food Security Act. On the other hand, as per the RBI report, only 2.39 crore people are below the poverty line in the State at the maximum level, which means Union Government is assisting more people than the top level, as declared in the RBI Report. Chief Minister YS Jagan wants to insert more than one 1.60 crore people in addition to the existing 2.67 crore people to assist Union Government with rice subsidies under the National Food Security Act. Moreover, We can note the huge discrepancy when the figures of the average number of people living in each household are compared with the facts.

According to the State Government calculations, almost 90% of the people in the State have possessed subsidised rice cards either under NFSA or State, But some deserving people still need to get free Rice since cards have not been issued to them. Does it mean that all the people in the State are below the poverty line? If almost 100% of people have ration cards for subsidised Rice, there are still people who are eligible and need cards. It means, The Union Government’s food subsidy, which should be available to crores of qualified poor people, is going into the pockets of a few ineligible in the form of corruption, and it should be checked to implement the proper internal controls to safeguard the public money.

In the last five years, the Union Government has provided funds of Rs 39,406 crore to the State of Andhra Pradesh under food subsidy. Notably, from April 2019 till now, the State received a food subsidy of Rs. 25,590 crores from the Union Government. Details of Food Subsidy Released to Andhra Pradesh in the Last Six Years: (Rs Crores) are as follows :

2022-23

438 ( Up to ౩౦th June 2022 )

2021-22 9323

2020-21 8,425

2019-20 7,404

2018-19 4,543

2017-18 6,060

2016-17 3,213

The CM YS Jagan has asked the Union Government to increase the range of beneficiaries under the National Food Security Act (NFSA), 2013, by trampling on the actual figures, which should provide free and subsidised Rice to all eligible persons. But if it is for the corruption of a few people with the assistance of the State Government mechanism, every step is needed to curb it. It can be noticed, after examination of RTI reply on the number of beneficiaries in the State and People in Poverty in the State as per RBI Report by correlating with ration cards approved by the Union Government and State Government along with the data of actual house holds in the state and average individuals residing in those houses, that What is happening in the State of Andhra Pradesh around the free and subsidised Rice. In these circumstances,

A cash transfer to the beneficiaries is good practice for curbing corruption around Rice. Otherwise, it will be tough to control the thieves who are eyeing the Central Government assistance for their benefit, But not the poor and needy. Then, the question arises as to how much money will be required to transfer to the beneficiaries from the Government. In this case, the calculation shall be fair and honest; the average cost of Rice is Rs. 38/ per Kg-, out of which Rs. 1/- has been collected from the beneficiary by the State Government of Andhra Pradesh and Rs. 1/- has been contributing by the State Government and Balance Rs. 36/-

in the cost bearing by the Union to the Government. Hence, if Government intends for a cash transfer scheme in place of subsidy rice, poor people will suffer when the cash transfer is less than Rs. 37/- per Kg. YS Jagan promised offered to give good quality thin Rice to the poor but is now playing tricks by non implementing it. In the spirit of the National Food Security Act, as per YSJagan’s promise, the amount equal to the Rice per kg should be paid to the poor.

Free and subsidised Rice provided by the Central Government for the poor of the State is going by the wayside:

1) Massive inflating the figures has been shown for eligible beneficiaries for the diversion of free and subsidised Rice from the Centre.

2) YS Jagan-led YSRCP Government is arguing that the aid provided for 2.67 Crore individuals by the Center is not enough, another one crore and sixty lakh people are being given the subsidised ration by spending state government funds. But, the fact is misusing those funds and robbing the close associates of the YSRCP.

3) There is a suspicion that the unilateral adjustments made between the districts by the State Government about free Rice gave under the Center’s Garib Kalyana Yojana are for corruption.

4) There are doubts over the number of houses provided by the State Government and the number of eligible beneficiaries after observing the RBI report on the poverty in the State.

5) It is a matter of concern that despite such a large number of beneficiaries, the eligible beneficiaries still do not have ration cards.

There are allegations floated that the Rice, which is already being given to the poor, is being recycled and exported abroad and a vast number of lorries illegally transporting the Rice in almost all districts in Andhra Pradesh have been caught by the vigilance department. It is noteworthy that the largest export of Rice in the country is from Kakinada. People need to understand the source from where the Rice is coming to the port, under which name the agreements are being made with which country and under whose eyes the Rice is being traded abroad are the questions worth noting. If a thorough investigation is conducted with the CBI, all those who have stolen the funds given by the Central Government for Rice will come out.

 

 

 

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Topics: Terrible Scam In The Rice SchemesBPL Families In APCM YS Jagan-led YSRCP GovernmentNational Food SecurityCenter's Garib Kalyana Yojana
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