Kakinada Port: $540 Million Worth of Rice Illegally Exported
Alleged Illegal Rice Exports of $540 Million from Kakinada Port
N. Manohar, Andhra Pradesh's Minister for Civil Supplies, Food, and Consumer Affairs, has alleged that rice worth $540 million was illegally exported from Kakinada Port (Andhra Pradesh, India) to African nations over the last five years. This revelation follows the recent seizure of a West-Africa-bound cargo ship, the Stella L Panama, by the state administration.
The investigations began after authorities received information about hoarded rice, initially meant for the Public Distribution System (PDS). As of June 2024, 640 tonnes of PDS rice have been confiscated, sparking inquiries into the systemic diversion of subsidized grains from government warehouses to illicit export channels.Vessel Seized at Kakinada Port
On November 29, 2024, Deputy Chief Minister K. Pawan Kalyan attempted to inspect the Stella L Panama, which was reportedly loading 38,000 tonnes of rice for export at Kakinada Port. Port security allegedly blocked access, prompting the Deputy Chief Minister to order the ship's seizure.Preliminary findings revealed that PDS rice. The exporters illicitly loaded the goods onto the vessel after securing their release through a bank guarantee. Officials suspect this is part of a larger scheme involving repeated diversions of government-subsidized rice for export.
Concerns Over Transparency
The Minister raised concerns over the lack of transparency at Kakinada Port. Which has reportedly become a hub for rice exports, handling the highest volume of shipments among ports in Andhra Pradesh.Manohar alleged that for five years, port officials restricted access, preventing thorough inspections of cargo. Twelve vessels are reportedly engaged in regular rice exports. Often bypassing proper verification of exporters and their credentials. These allegations highlight systemic loopholes that facilitated the diversion of subsidized grains for profit.
Investigations Reveal Profit-Driven Export Practices
Authorities are conducting an in-depth investigation into the port's operations and the networks enabling these illegal exports. Experts pointed to the profit margins in the export market as a key motivator.While the Minimum Support Price (MSP) for rice in India is $0,29 per kg, the Free On Board (FOB) price for exported rice can reach $495 per tonne. This significant price gap creates lucrative opportunities for unscrupulous exporters to exploit government-subsidized rice for private gains.
Conclusion: Cracking Down on Illicit Rice Exports
The allegations of large-scale illegal rice exports from Kakinada Port underscore the need for tighter oversight of public resources and port activities. The seizure of the Stella L Panama and the ongoing investigation aim to dismantle networks involved in these operations and hold those responsible accountable.Click here to reach our trading platfrom CMBroker
