Rice worth ₹45,000 crore `illegally’ exported from Kakinada port in last 5 years: AP Minister

Rice worth ₹45,000 crore was `illegally’ exported from Kakinada Port to Africa in the last five years, according to N Manohar, Minister for Civil Supplies, Food and Consumer Affairs, Government of Andhra Pradesh.

Sharing details of the illegal export of rice after the seizure of a West-Africa bound cargo ship, Stella L Panama in the port by the State administration in the port, the Minister on Sunday said raids on godowns where rice was hoarded were being conducted from June this year. 

The officials seized 640 tonnes of rice allocated for the Public Distribution System. Acting on a tip-off that 38,000 tonnes of rice was being loaded into the ship in the Kakinada port, the Deputy Chief Minister K Pawan Kalyan, along with officials, attempted to conduct an inspection aboard the ship in the anchorage port.

When he was refused permission by the port security, he ordered the seizure of the vessel on Nov 29,2024 which is still under seizure. The seized PDS rice was released under a bank guarantee by `some’ exporters and eventually found it way to the Africa-bound ship.

The port always had 12 vessels and had ‘highest’ exports of rice compared to any other port in the State, the Minister said alleging that it was because of the illegal exports. 

“For the last five years, nobody was allowed inside the port for verification and there was not clarity on the exporters and their permissions. We understand that the PDS rice was diverted for exports in large quantities,’‘ Manohar said. A thorough investigation is currently underway into the whole matter, he added. 

When asked on dynamics of export price for rice, an industry expert said “Even if the rice is procured at ₹24 per Kg (which is the current MSP), the FOB price (export price) for rice would. be in the range of $495 per tonne.