Thrissur: A fraud amounting to crores of rupees has come to light in the state,  revolving around the subsidy for paddy procurement. In addition to the support extended by the central government, the state also offered an incentive of Rs 7.70 per kg which is said to have attracted the fraudsters. 
While rice stockpiles were procured as per revenue records, other areas that dealt with varied cultivation were registered for paddy procurement under Supplyco. Accordingly, paddy in increased quantities is harvested and supplied to Supplyco. The resulting profit is shared between the land owner and the middlemen. 

If the procurement by Supplyco is delayed, paddy is bought at lower rates from those in need of immediate funds. The same is later sold to Supplyco at higher rates. During harvest season, paddy is procured from the neighboring states and stored in godowns. Later, it would be passed on to Supplyco under the names of registered land owners. Fallow lands and those with varied cultivation are usually registered for this purpose. 

The loops keep unraveling

Reportedly, the links behind this chicanery include paddy harvesting mills, their agents, some officials as well as politicians.This massive swindling came to light due to the suspicions of some officials who had recently taken charge.

Palakkad district is the nucleus of this fraud. While Alappuzha and Thrissur that hold the second and third position in rice grain procurement increased their production, Palakkad recorded a shortfall of 58,000 tonnes. When calculating the price, this amounts to more than Rs 163 crores.