As AP checks diversion of PDS rice for exports, row over installation of checkpost at Kakinada port
The Andhra Pradesh government’s move to put up a checkpost at the entrance of the Kakinada port to check the diversion of rice distributed to below poverty line (BPL) people through ration shops for exports has triggered a controversy.
The problem is more due to the way the State government is going about to prevent the diversion. It has badly affected the shipping industry in the town, trade sources said.
“The State government’s efforts to curb diversion of ration or public distribution system (PDS) rice for exports is welcome. But in trying to do that they brought the entire Kakinada town to a virtual halt,” said a local industry leader, speaking on the condition of anonymity.
Meeting on August 16
While the installation of the checkpost has turned out to be a big problem, other problems that have cropped up are the seizure of rice ready for despatch without specifying the violations or filing of a first information report and lower productivity which affected daily workers’ income.
The installation of the checkpost led to a traffic jam in the town and affected “shore loaders” of income. As a result, transporters and “shore loaders” — who load the barges that sail to the anchored ship in the port — went on a three-day strike since August 10.
“The strike was called off after State Civil Supplies Minister Nadendla Manohar said the district collector will hold a meeting on August 16 to find a solution to the problems we face,” said the leader.
‘Financial losses’
A letter from the local lorry operators association to government officials, seen by businessline, said no transport would be allocated for transporting rice for loading in barges due to “heavy traffic jam in Kakinada new port area due to district administration check post”.
The traffic jam led to “heavy financial losses” for its members, it said. The checkpost was installed at the entrance of the port, which has a narrow road. This led to a queue of lorries building up and taking 3 hours for a person to reach the port entrance.
“This affected the productivity at the port. Lorries do some 1,750 trips a day but the verification brought transport movement to a trickle,” said the industry leader. This resulted in anchored ships sailing with smaller consignments of 3,000 tonnes against the normal 15,000 tonnes.
Income loss
What the official at the checkpost do is the pull out rice sample from the lorry and see if there is any presence of fortified rice kernel (FRK) in the consignment. The State distributes FRK rice through ration shops.
Due to the traffic jam, “shore loaders”, who are paid on a per-load basis, lost their income, resulting in unrest among them.
Manohar reviewed the situation in the town on Tuesday along with representatives of the shipping trade and local MLA Vanamadi Venkateswara Rao.
The Minister told the media that 26,000 tonnes of rice diverted from the PDS for exports were seized. He said a clear plan of action to expedite rice exports from the anchorage port will be chalked out after discussions with labour unions and exporters.
‘No hidden agenda’
Trade sources said State government officials, including those from the revenue department and police, had seized 50,000 tonnes before releasing 24,000 tonnes.
“No notice has been issued for the seized 26,000 tonnes. Nor have officials specified what the violations are. They say they will come up with the charges this week,” a trading source said.
The Minister said the State wanted to curb irregularities in rice exports and had no other agenda. A statement by the district collector said 51,427 tonnes of PDS rice from 13 godowns had been seized during June and July and raids are continuing to prevent the diversion of PDS rice for exports. It said notices have been issued for confiscation and criminal cases have been filed. Arrests for the diversion will be made soon, it said.
An industry source said: “This is not something that is happening now. It has been taking place for over a decade. The Government should take action against the sellers and not just target buyers.”
G2G exports
The source said the rice bought by the BPL community from ration shops is either sold entirely or partly to a small aggregator, who in turn sells it to a large aggregator. The rice then goes to the mill for sortex and upgradation.
“A small minority of exporters are involved in this diversion of PDS rice for exports. But why trouble the others who are not involved in such activities?” the source wondered.
Local shipping industry leaders say they have no problems with the move to stop the diversion of PDS rice for exports but the checkpost could be put up in three places that are the entry points into the town rather than at the narrow entrance of the port.
Manohar has asked the industry representatives to discuss the issue with the district officials. Industry sources said since curbs on rice exports are in place, the shipments are made on a government-to-government (G2G) basis by companies chosen by the National Cooperative Exports Ltd. It has been mandated by the Centre to take care of G2G shipments.
Fool-proof method?
The rice is kept ready for shipments and industry sources wonder under what authority are these consignments being inspected by district officials.
The local industry leader said officials could perhaps inspect broken rice (meant for Senegal under G2G arrangement) and white rice. He pointed out that parboiled (boiled) rice is not produced in the State and officials could exempt it.
“What about rice that comes from other States such as Telangana for exports?” the leader asked.
Another industry leader said the Andhra Pradesh government was, perhaps, wanting to ensure a fool-proof method of ensuring PDS rice is not exported.