Food Corporation Disputes Scope of Alleged Rice-Ethanol Scam

The Food Corporation of India (FCI) has officially disputed reports claiming a ₹1,160-crore rice-to-ethanol diversion scam, categorizing such figures as factually incorrect. While local inquiries have placed 56 mills and 22 ethanol plants under scrutiny, the FCI clarified that the ongoing investigation is actually limited to a diversion of 242.5 quintals of rice, significantly lower than the massive financial misappropriation alleged by political figures. The corporation is conducting internal audits to ensure transparency in its supply chain management.

The controversy escalated after Congress leader Mallikarjun Kharge labeled Madhya Pradesh the epicenter of corruption, citing the alleged multi-crore scam. Opposition leaders have demanded a wider, independent investigation into the distribution of food grains intended for public welfare being diverted to ethanol production. The situation has prompted authorities to issue notices to several mills in Madhya Pradesh and Maharashtra to determine the extent of administrative lapses and regulatory breaches.

As the investigation continues, authorities are focusing on the family-run units of local political figures currently under the scanner. The discrepancy between the high-profile allegations and the specific volumes cited by the FCI indicates a complex intersection of political maneuvering and industrial audit procedures. Observers expect the case to remain a significant point of contention in state-level debates, with the government likely to release further findings from the probe to reconcile these differing accounts of the diversion scale.