Hyderabad: The government began distributing a three-month supply of ration in June, anticipating the rainy season. However, many Fair Price Shop (FPS) dealers are misusing this initiative by redirecting fine rice (sanna biyyam) to the black market.
FPS dealers exploit the situation by selling the rice at Rs 10 per kg at their shops, with some beneficiaries reselling it for Rs 20 per kg in open markets. This undermines the initiative, costing the government approximately Rs 13,523 crore annually.
In parts of Hyderabad, FPS dealers complicate access to fine rice, using excuses like ‘server down’, forcing beneficiaries to accept cash at Rs 10 per kg instead of waiting in long lines. Official rules exist to prevent black-marketing of PDS rice, yet the fine rice continues to be illegally sold in open markets.
Some dealers create artificial scarcity amid the three-month ration plan. In Tolichowki’s Nizam colony, beneficiaries wait in long queues, sometimes up to three hours, due to multiple authentication and weighing processes. Only a few receive their ration, while others are asked to return later. Dealers offer cash to those unwilling to wait, allowing them to bypass queues, as noted by P Srinivas Goud, a watchman.
In the Film Nagar area, the process is smoother, but getting ration on the first day is unlikely. Beneficiaries receive tokens with specific dates and times for collection.
The prospect of selling their ration quota tempts many to avoid waiting, increasing black-market opportunities. Locals report that even those who get sanna biyyam often sell it at Rs 20 per kg in markets. Rahmat Begam, a domestic worker in Film Nagar, confirms this practice.
Officials insist FPS dealers must clearly communicate ration schedules to the public, with field officers monitoring compliance. In April, Civil Supplies Minister N Uttam Kumar Reddy stated that fine rice distribution began after studies showed the coarse variety was often unused or sold illegally. The government aims to distribute 30 lakh metric tonnes of fine rice annually. Addressing the diversion of fine rice to open markets is crucial.
