The public filed a complaint with the Karaikudi Assistant Superintendent of Police (ASP) Ashish Punia requesting an investigation into a sophisticated scam where ration rice smuggled to rice mills in Pallathur is being sold back to the government.

Around 15 private modern rice mills operate in places like Pallathur, Puduvayal, and S.R. Pattinam near Karaikudi, it is said.

Some of these mills received paddy bags from the Civil Supplies Corporation, mill them into rice, and supply them back. The Civil Supplies Corporation then distributes this rice to ration shops, they alleged.

The petition stated that the government procures one kilogram of paddy from farmers for ₹25 to ₹25.45.

To produce one kg of rice, 1.5 kg of paddy is required. The cost of 1.5 kg of paddy is ₹38, the milling charge for the mills is ₹4.50, loading and unloading charges are ₹3.60, and the transportation cost per 100 km is ₹9. Thus, the government spends between ₹56 and ₹60 for one kg of ration rice.

However, some people buy ration rice at low prices from ration shops and households in southern districts and smuggle it to certain rice mills in Pallathur.

The mills buy it for ₹20 per kilogram. Later, they sell the exact same rice back to the government for ₹56 to ₹60. Through this, they pocket a profit of ₹36 to ₹40 per kg.

As a result, it is the government that incurs losses. Further, the exact same rice keeps circulating in a loop, they complained.

However, the Tamil Nadu Civil Supplies CID (Civil Supplies Crime Investigation Department) and the Flying Squad of the Supply Department, which were created to prevent this, are completely ignoring it, they alleged.

Only the local police seizes smuggled ration rice from time to time. Therefore, a proper investigation must be conducted regarding this irregularity, they demanded.

They requested the formation of a special monitoring committee to conduct continuous inspections in Pallathur and its surrounding areas.

The legal status of cases related to the ration rice seized from time to time must also be reviewed, they added.