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Kerala Kaumudi Online
Tuesday, 13 October 2026 3.06 AM IST

Kerala traders turn Tamil Nadu's free ration rice into 'Ponni' rice and sell it back

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THIRUVANANTHAPURAM: Free ration rice distributed to poor families in Tamil Nadu is being procured through middlemen at low prices and transported to Kerala. It is then processed at mills in Kerala to give it the appearance of 'Ponni' rice before being sent back to Tamil Nadu under a new brand. The rice is sold there at much higher prices. Tamil Nadu's Food Department has found that traders from Kerala are behind the racket.

Tamil Nadu Food Department Secretary K. S. Palanisamy has written to the Kerala Food Department, seeking action against mill owners in the state allegedly involved in the racket. Earlier, Tamil Nadu had found that ration rice procured from the state was being sold at higher prices in Kerala.

The latest findings indicate that the rice is processed at mills near the Kerala-Tamil Nadu border to alter its appearance. The Tamil Nadu government provides up to 25 kg of free rice through ration shops to poor families, in addition to the allocation from the Central government. Middlemen collect this rice and supply it for the racket.

Bought at Rs 25, sold for up to Rs 80

Middlemen procure the ration rice in Tamil Nadu at Rs 25 per kg. It is then taken to mills in Kerala, where it undergoes a special process to slightly increase the length of the grains and give them the appearance of Ponni rice. The rice is subsequently transported back to Tamil Nadu and sold at prices ranging from Rs 65 to Rs 80 per kg.

RELATED TOPICS: TAMIL NADU RATION RICE, PONNI RICE, TAMIL NADU RATION RICE SCAM, KERALA RICE MILLS, FREE RATION RICE, RICE SMUGGLING RACKET
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