3 weeks ago

Major leaks in India's food security system

Major leaks in India's food security system
Major leaks in food security system · thehindubusinessline.com

India runs a big program that gives poor families cheap rice and wheat through shops called ration shops.

This program is called the Public Distribution System, and the government buys the grain and stores it with an organization called the Food Corporation of India.

The article says some of this food meant for poor people is being taken away and used for other things, like being sold for money.

A lot of the stored rice is now being turned into ethanol, a fuel that goes into car engines.

In just one year, the share of this rice used for fuel jumped from almost nothing to about a quarter of all ethanol made in India.

The government says it only uses leftover or damaged grain that people cannot safely eat, and that making fuel saves the country money.

But the article says poor families are getting less food, and new rules could cut rations for more than half of the poorest households.

New technology, like fingerprint checks, is also stopping some poor and older people from getting their food because their fingerprints are worn or they have no internet.

The writer worries that feeding cars is becoming more important than feeding hungry people.

Key facts

FCI rice share in ethanol feedstock (ESY 2025-26)
24.64%
FCI rice share in ethanol feedstock (ESY 2024-25)
0.02%
Rice used for ethanol in ESY 2025-26 (as of June 2026)
44 lakh tonnes
Alleged weekly diversion of subsidised rice (Bharadwaj claim)
₹143 crore
Grain unaccounted for in Uttar Pradesh (one year)
Over 12 lakh tonnes
Ration cards cancelled since 2020
2.49 crore
Reported foreign exchange savings from ethanol programme
₹1.97 lakh crore
FCI open market wheat sales (2024-25)
Over 25 lakh tonnes

Sources

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