Political Extortion Alleged in Visakhapatnam Ration Rice Trade
Allegations of political interference in the illegal ration rice trade have surfaced in parts of the city, with claims that a local coalition leader demanded monthly payments from traders allegedly involved in the diversion of subsidised rice meant for distribution to economically weaker sections.
According to sources, large quantities of rice supplied through the public distribution system are being diverted into the open market through unauthorised channels. In several localities, ration depots are reportedly being operated through benami arrangements, while dealers are alleged to be purchasing rice back from cardholders at prices ranging between ₹13 and ₹15 per kilogram.
The rice is subsequently procured by traders and transported to rice mills located in the city outskirts and neighbouring Vizianagaram district, sources said. It is estimated that nearly 1,000 to 1,200 tonnes of ration rice are moved from the area every month.
Sources familiar with the developments alleged that a person previously associated with rice mill operators recently approached the coalition leader and informed him about the scale of the trade. The individual reportedly suggested that traders could be compelled to make monthly payments in exchange for uninterrupted business operations.
In the past few weeks, police reportedly seized a few vehicles transporting ration rice after receiving information from local sources. Following these incidents, traders engaged in the business are said to have met associates of the coalition leader.
During the discussions, the traders were allegedly told that they would have to pay ₹10 lakh every month to continue operations. A meeting between the traders and the leader is said to have taken place a few days ago, and a few ration dealers reportedly attended it as well.
Sources alleged that the leader insisted on the monthly payment and suggested that traders adjust the amount by marginally reducing procurement prices at the field level.