"Factually Incorrect": Food Corporation Disputes Rice-Ethanol 'Scam' Scale
The Food Corporation of India has denied allegations of a massive rice diversion scam, stating that the actual misappropriation under investigation is worth only Rs 5.63 lakh. The agency clarified that media reports incorrectly conflated the total value of rice supplied for ethanol production with the amount allegedly diverted.
Why it matters
This clarification addresses public concerns regarding the integrity of government grain distribution and the scale of potential corruption in state-run programs.
The Food Corporation of India (FCI) has branded reports alleging a massive rice diversion scam in Madhya Pradesh as "factually incorrect and completely baseless". Disputing the scale of alleged misappropriation of the grains earmarked for ethanol production, it said the value of the missing rice under probe is just Rs 5.63 lakh, not the entire stock worth Rs 1,160 crore.A truck carrying rice from the FCI warehouse to the ethanol plant was found inside a private rice mill, prompting a wider probe involving 17 seized trucks, 56 rice mills, and 22 ethanol plants.
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