Karnataka authorities have seized nearly 565 tonnes of subsidised rice meant for the public distribution system (PDS), along with 24 vehicles worth a combined Rs 4.75 crore, during a three-day statewide crackdown on alleged diversion of government-distributed grain for illegal export to Africa through Chennai port.
The seized rice weighed 5,64,992 kg and was valued at Rs 1.34 crore, while the vehicles were worth Rs 3.41 crore, PTI cited a statement issued by the state’s Department of Food, Civil Supplies and Consumer Affairs.
The operation, directed by Food and Civil Supplies Minister Rizwan Arshad, resulted in six criminal cases being registered under the Essential Commodities Act, 1981, and nine people being booked. Two government officials have also been suspended pending a departmental inquiry over alleged negligence in handling an illegal rice storage facility.
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Truck Carrying ‘Rice For Africa’ Intercepted
During the operation, officials intercepted a truck at the Attibele checkpost in Bengaluru Rural district carrying 35,000 kg of rice packed in 700 bags bearing the brand name ‘WoW’ and the tagline ‘Rice for Africa’.
Investigators valued the consignment at Rs 11.63 lakh and identified the grain as rice procured from the Food Corporation of India (FCI) through the public distribution system.
Preliminary findings indicated that Mandya-based Annapurneshwari Enterprises had purchased FCI rice, processed it through light polishing at a mill and sold it to Madhya Pradesh-based Sailor Exports Limited. The rice was allegedly intended for illegal export to Africa through Chennai port.
The department also flagged a significant mismatch 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.
Following the findings, the deputy director of the department in Mandya issued show-cause notices to the parties concerned. An FIR was also registered in connection with the alleged export operation.
Belagavi Records Largest Seizure
The biggest seizure 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 valued at Rs 98.67 lakh and impounded 19 trucks worth Rs 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. The department said 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 the drivers, who were from Latur, Satara and Hubballi.
In Vijayapura city, Jalanagar police seized an abandoned truck carrying 35,392 kg of rice worth Rs 8.26 lakh after its driver allegedly fled during the raid.
Authorities also took action against Ravi Traders, which allegedly operated an illegal PDS rice storage facility in Bastawad village in Belagavi district.
Two Officials Suspended
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.
According to the department, the officials had been instructed to inspect the facility and initiate prosecution. However, they allegedly released an impounded truck and its rice without registering an FIR or informing senior officials.
Arshad said the crackdown would cover private traders, companies and government officials suspected of involvement in the alleged diversion or of failing to act against it.
“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 minister said, according to the statement.