Officials say a multi-crore network collects ration rice, moves it across the Kerala-Tamil Nadu border, repackages it as branded rice and sells it at a higher price.

Parassala (Kerala): Civil Supplies officials have seized around 10,000 kg of ration rice that was illegally stored inside a rented house near the Kerala-Tamil Nadu border.
A car allegedly used to transport the rice was also seized from near the house.
Police received a tip-off on Saturday evening that ration rice was being illegally stored in a house near Karali in Parassala. During an inspection, police found large quantities of rice inside the house and informed the Civil Supplies Department. Police personnel were deployed at the location overnight.
On Sunday morning, Civil Supplies officials led by the Neyyattinkara Taluk Supply Officer inspected the premises. They found sacks of rice stacked behind the house, covered with tarpaulin, as well as inside the kitchen at the rear of the building.
The storage facility was operated in such a way that there was no visible indication from the front of the house that a large quantity of rice was being stored there.
The house had been rented in the name of James, a native of Kaliyakkavilai.
Officials found around 10,000 kg of ration rice stored in nearly 200 sacks, along with three sacks of ration wheat. Rice and wheat residue was also found inside the car parked near the house.
The vehicle was reportedly used to transport rice from Tamil Nadu and was taken into custody by the Parassala police. Several sacks bearing different brand names were also found inside the house.
According to officials, illegal rice storage facilities have been operating in areas including Inchivila, Naduthottam and Vanyakkode along the border.
The Civil Supplies Department has intensified inspections over the past month, following which those involved began using houses in residential areas to store ration rice. The rice seized from Vanyakkode has been shifted to Civil Supplies warehouses.
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Illegal rice network along the border
Officials said the rice reaching these storage facilities is illegally collected from ration shops in both Tamil Nadu and Kerala.
A large network operates along the border to collect and transport ration rice.
More than 20 illegal rice storage facilities are reportedly operating in the Inchivila and Vanyakkode areas. The network mainly deals in rice distributed free of cost in Tamil Nadu.
Warehouse operators have employed workers in Tirunelveli and Kanyakumari districts to collect rice from households for around Rs 5 per kg and stored in hidden areas in the state.
The rice is then transported across the border in various ways. In some cases, trucks are fitted with tarpaulin sheets at the bottom, with sacks of rice placed underneath other goods to conceal them.
In another method, seats other than the driver's seat are removed from vehicles and filled with rice.
Some households also transport the free ration rice directly to warehouses on two-wheelers and sell it. Warehouse operators pay Rs 12 or more per kg for rice delivered directly to them.
Ration rice repackaged as branded rice
The rice brought to these warehouses is converted into branded rice within minutes.
Workers fill the rice into sacks printed with the names of various brands. Each warehouse is said to employ between five and 10 workers for this purpose.
The repackaged rice is then transported to rice mills in trucks, where it is polished, coloured and processed before being sold in the market as branded rice.
Processing centres operate in Inchivila, Poovar, Poovachal and Kuttichal.
Officials said some distributors supplying rice to the Civil Supplies Department also procure large quantities of ration rice through this network. Rice stored in this manner is repacked into new sacks and then supplied back to the Civil Supplies Department.
Rice bought by warehouse operators for around Rs 5 per kg is allegedly sold for Rs 30 or more per kg. Officials said transactions worth crores of rupees take place in the network every day.
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How ration rice is smuggled across border
Despite extensive measures by the Tamil Nadu government to prevent the illegal transportation of ration rice into Kerala, the smuggling allegedly continues with payments being made to officials on a monthly basis. According to the allegations, inspections at warehouses along the border are carried out when these payments are delayed or missed.
With strict checks in place at checkposts on major roads, smugglers use interior roads to move the rice across the border.
The ongoing construction of the Kanyakumari-Karode bypass has left some sections without regular checks, making the route a major corridor for rice smuggling, according to officials.
Vehicles entering Karode travel through Parassala village to reach the Inchivila area.
Published: 14 Sept 2026, 11:39 am IST
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