Rice Millers in connivance with the corrupt officials of supply department and District Procurement Committee have produced more than 60 thousand quintals of paddy in papers during the Rabi season of 2008-09 in Nuapada district in Orissa State (INDIA). This has become possible even in the un-irrigated lands during Summer. They have made more than 6 crores rupees in this process. Information obtained through Right to Information Act from the District Civil Supply Office, Nuapada has revealed this scam.
Government has opened Mandis (Procurement Centres) in various places of the district to procure paddy from the farmers in prescribed rate (Minimum Support Price). Mandi at Khariar town and Tukla under Khariar Block are two of them. The papers obtained through RTI shows that the procurement centres at this two places have purchased more than 70 thousand quintals of paddy from 535 farmers of 79 villages during the Rabi (Summer paddy) where the total production according to Government sources was only about 7 thousand quintals. Verifications of facts of course reveal these picture.
1. Total production during the Rabi season-2008-09 in the villages those are covered under Khariar and Tukla Mandi (Villages in Khariar block and parts of Sinapali and Boden blocks) was not more than 7 thousand quintals (information from Agriculture department)
2. 48 villages out of the total 79 shown in the papers do not get irrigation at all during the Rabi. The farmers never cultivate paddy in these villages during Rabi. But the papers show that the total production in these unirrigated lands during that summer was 37547 quintal of paddy.
3. The rest 31 villages shown in the list get irrigation through Lift Irrigation points installed on the banks of river Sundar but had incurred more than 90 percent crop loss in 2229 acres of land during the Rabi-2008-09 due to shortage of water in the river. But the total production in these villages has been shown as 30289.41 quintals i.e. after a loss of more than 90 percent ! (Total production capacity of these lands at the rate of average 33 qtls per acre is 73557 quintals according to agriculture department.) As the flow of water in River Sundar was stopped by the dam authority at Tikhhali (Lower Inedra Irrigation Project) the sundar river dried. The irrigation department has been made accountable for this loss and people have been compensated for their loss during this season i.e. Rabi – 2008-09 by the irrigation department.
4. 63% of the total names mentioned in the list of farmers are fake names. They are not found in the villages as mentioned in the list.
5. 9 percent of the farmers appearing in the list are landless but they have sold paddy as farmers. They work / were working in the Rice Mills as labourers and the Millers have obtained Farmers Identity Cards in their (Labourers) names.
A few examples cane be given,
1. In Amlapali village of Khariar Block 5 marginal farmers (without having any facility of irrigation during Rabi) having a total of 13.45 acres of lands have sold 740 qtls of paddy. (in an average of 55.19 qtls per acre ! when the average yield per acre is as per govt. data is not more than 33 qtls in Rabi)
2. In the same Amlapali Village a farmer named Biseswar Punji, S/o Padmalochan Punji having 1.5 acres of unirrigated land has sold 260 quintals of paddy during Rabi – average of more than 133 qtls. per acre.
One will find a lot of incongruities like these in the papers provided by the supply department. These figures show the extent of manipulation in the paddy procurements by the Millers who make crores of rupees through fake business. Showing higher amounts of procurement in papers help the millers in two ways,
1. Earning money through custom milling: A conservative analysis of the above figures reveal that the millers have shown sale of at least 44 thousand quintals of rice to the government and in the open market. (producing @66 % rice per quintal of paddy through milling) This will amount to an income of more than Rs.7 crores of which 90% is earned through paper works.
2. Earning through black marketing of PDS rice: The gap generated through paper works is filled in by black marketing of PDS rice.
This paddy procurement – rice milling – PDS black marketing racket operates with full participation of the following departments / Institutions.
1. District Procurement Committee where the Collector is the Chairman
2. Civil Supply Department.
3. Tahasil department which issues fake cards to the fake farmers.
4. Banking Institutions which open Bank accounts in fake names.
We had filed a complaint in this regards before the D.G., Vigilance. He has ordered an inquiry. A vigilance team has already started operation. Let us see what the outcome is.

Ajit Kumar Panda
Chitta Ranjan Sing Deo, Advocate
Bhabesh Panigrahi, Advocate
Tapan Ranjan Dash, District Correspondent, Doordarshan, AIR
Saroj Nag, Social Activist