Thiruvananthapuram: A four-year probe into Kerala’s public distribution system has revealed deep-rooted corruption within the state-run Supplyco network — from missing rice stock and forged ration records to sabotaged audits. Despite multiple inquiries, accountability remains elusive even as officials scramble to tighten digital surveillance.
A Grain-by-Grain Fraud Uncovered
Over the past four years, inspections across Kerala’s public distribution network have unearthed one of the state’s largest food subsidy scams. District Supply Officers, working under the Civil Supplies Department, found systematic diversion and misappropriation of rice meant for the poorest households.
An RTI response revealed that out of more than a thousand ration outlets examined, 345 were found engaged in irregularities — ranging from short-weighing to forgery on e-PoS machines. Licences of 18 outlets were permanently cancelled, while 327 were suspended. Thiruvananthapuram district alone recorded 89 suspensions, followed by Kollam (53) and Alappuzha (42).
Investigators discovered that many shops deliberately under-measured rice by 100 grams per kilogram, effectively siphoning off nearly one-tenth of supplies. “In some cases, even the weight of the vessel was included,” one official said. Dealers were also found purchasing rice from priority families at ₹13 per kilogram and reselling it to middlemen for ₹27.
Inside the Godowns: Missing Stock and Sabotaged Audits
The scandal extended far beyond ration shops. A series of audits by Supplyco’s Internal Inspection Wing between June 2021 and August 2025 uncovered widespread discrepancies in National Food Security Act (NFSA) godowns.
At Valiyathura, 50,000 kilograms of rice went missing from an NFSA warehouse in 2021. Though the Vigilance Department recommended registering a police case, the effort was allegedly sabotaged. Even after the depot manager lodged a complaint, no formal statement was recorded.
A subsequent audit assessed a liability of ₹18.49 lakh against officials at the Valiyathura depot. Yet, despite recommendations for recovery from two junior assistants and an assistant salesman, no action followed. In another case from Menamkulam, ₹10 lakh in missing stock was traced to misappropriation in 2019 — again, no recovery was made.
To date, 110 Supplyco employees have been suspended in connection with godown irregularities. Officials have been instructed to file police complaints whenever losses exceed ₹1 lakh, but enforcement remains patchy.
How the System Was Exploited
The fraudulent network thrived on loopholes in the distribution chain. Investigators found that shop owners often recorded fake transactions by using beneficiaries’ thumb impressions on e-PoS devices — sometimes collected during home visits.
Those under the “white card” category, who rarely collected rations, were prime targets. Their entitlements were quietly absorbed into black market circulation. This manipulation of biometric verification — designed to ensure transparency — exposed the fragility of a system heavily reliant on trust and manual oversight.
A senior Civil Supplies officer admitted that “incentives for manipulation far outweighed the fear of detection,” especially in districts where local inspections were infrequent or compromised by internal pressure.
Reforms, Resistance, and the Digital Push
Faced with mounting criticism, Civil Supplies Minister G.R. Anil announced a digital overhaul of NFSA godowns. CCTV surveillance has been installed across warehouses, and a vehicle tracking system introduced to monitor the transport of grain.
But technology alone may not address structural inertia. Insiders allege that service organizations within Supplyco have at times sabotaged audit findings to shield colleagues. Even where licences were revoked, several shops managed to reopen after paying fines.
