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Poor starve as politicians steal Rs 80,649 crore worth of food in Uttar Pradesh
-The Economic Times

Ram Kishen, 52, half-blind and half- starved, holds in his gnarled hands the reason for his hunger: a tattered card entitling him to subsidised rations that now serves as a symbol of India's biggest food heist.

Kishen has had nothing from the village shop for 15 months. Yet 20 minutes' drive from Satnapur, past bone-dry fields and tiny hamlets where children with distended bellies play, a government storage facility five football fields long bulges with wheat and rice.

By law, those 57,000 tonne of food are meant for Kishen and the 105 other households in Satnapur with ration books. They are meant for some of the 350 million families living below India's poverty line of 50 cents a day.

Instead, as much as $14.5 billion (around Rs 80,649 crore) in food was looted by corrupt politicians and their criminal syndicates over the past decade in Kishen's home state of Uttar Pradesh alone, according to data compiled by Bloomberg. The theft blunted the country's only weapon against widespread starvation -- a five-decade-old public distribution system that has failed to deliver record harvests to the plates of India's hungriest.

In Gonda, the one district for which all three investigative authorities have agreed upon a number, the market value of food diverted was $82 million over a four-year period. Extrapolating over 10 years for the state's 71 districts at the time, as much $14.5 billion may have been stolen. Uttar Pradesh now has 75 districts.

"This is the most mean-spirited, ruthlessly executed corruption because it hits the poorest and most vulnerable in society," said Naresh Saxena, who, as a commissioner to the nation's Supreme Court, monitors hunger-based programs across the country. "What I find even more shocking is the lack of willingness in trying to stop it."

A state police force beholden to corrupt lawmakers, an underfunded federal anti-graft agency and a sluggish court system have resulted in five overlapping investigations over seven years - and zero convictions.

India has run the world's largest public food distribution system for the poor since the failure of two successive monsoons led to the creation of the Food Corporation of India in 1965. The government last year spent a record $13 billion buying and storing commodities such as wheat and rice, and expects that figure to grow this year.

Yet 21% of all adults and almost half of India's children under 5 years old are still malnourished. About 900 million Indians already eat less than government-recommended minimums. As local food prices climbed more than 70% over the past five years, dependence on subsidies has grown.

From the government warehouses, millions of tonne are dispatched monthly to states, which are supposed to distribute them at subsidised prices to the poor. About 10% of India's food rots or is lost before it can be distributed, while some 3 million tonne of wheat in buffer stocks is more than two years old, according to the government.

Even after accounting for the wastage, only 41% of the food set aside for feeding the poor reached households nationwide in 2005, according to a World Bank study commissioned by the government and released last year.

In Uttar Pradesh, where the minister of food stands charged with attempted murder, kidnapping, armed robbery and electoral fraud, the diversion was more than 80% in 2005, the World Bank report said.

Fully 100% of the food meant for the poor in Kishen's home district was stolen during a three-year period, according to India's Central Bureau of Investigation, the country's leading anti-corruption agency. When Kishen sought his monthly quota at the village's fair price shop, as the ration stores are called, they'd either find a locked door or be told to return the following month, said Javeed Ahmad, the CBI officer leading the agency's investigation of the scam for more than three years.

"Who is a person who holds a below poverty line ration card? A person of no influence," he said. "If he shows up at the fair price shop and there is no below-poverty-line wheat, you can just tell him to buzz off."