The Food Corporation of India (FCI) has launched an investigation into potential fraudulent activities related to the recycling of paddy in Odisha, specifically in the western districts of the state.

The probe began after complaints emerged that custom milled rice (CMR) was being recycled on a large scale, with millers allegedly supplying rice to FCI that was not from the paddy allotted to them.

According to reports, the rice millers may have been using cheaper paddy purchased in the previous year, while falsely claiming it was freshly milled rice.

In some cases, there were allegations that no proper photographic documentation of paddy stock was being kept, enabling rice to be taken from the allotted quotas without proper verification.

Some sources estimate that the fraudulent activity could involve up to Rs 15 crore and potentially thousands of tonnes of rice.

The central government purchases CMR from state governments at a rate of Rs 29 per kg for the central food pool, which is then distributed to beneficiaries under the National Food Security Act and other welfare schemes.

Any significant discrepancies or fraud in this process would cause substantial losses to the government and its food subsidy programs.

The investigation has been prompted by a complaint that millers may have falsely documented paddy purchases or engaged in recycling rice, which was then allegedly used in the Public Distribution System (PDS), potentially leading to widespread misappropriation of resources.

A joint physical verification of stocks has been initiated by FCI in collaboration with state authorities to uncover the scale of the fraud.

The probe is still in its early stages, but the seriousness of the allegations suggests that a thorough investigation will be carried out to uncover any irregularities and hold those involved accountable.