Karnataka transporters strike over late dues; Anna Bhagya food supply hit

Business Standard

08-07-2025

Transporters have stopped the supply of rice and foodgrains across Karnataka, throwing the state's flagship food security programme, 'Anna Bhagya', over unpaid dues stretching back six months, according to a report by The Hindu.
The indefinite strike by the Federation of Karnataka State Lorry Owners and Agents' Association is expected to severely impact the delivery of subsidised grains to fair-price shops, directly affecting thousands of below-poverty-line (BPL) families reliant on the scheme.
₹30 cr dues pending, operations suspended
On Monday, the federation announced a complete suspension of loading operations from the Food and Civil Supplies Corporation depots. The decision, Federation president G R Shanmugappa said, was driven by non-payment of transportation bills since February this year. 'We are unable to continue in this situation,' he said, adding that the operators could no longer absorb the financial pressure.
According to the association, the state owes transporters nearly ₹30 crore. They also flagged the issue of earnest money deposits (EMD), where each transporter had to pay ₹4 lakh as part of the tender process. Additionally, many loaders employed under these contractors, many of whom rely entirely on this work, have reportedly not been paid for months.
While a meeting was held between the transporters and state officials on June 19, with an assurance that dues would be cleared by July 5, no payments have materialised yet. The Federation has now appealed directly to Chief Minister Siddaramaiah and Deputy Chief Minister DK Shivakumar for urgent intervention.
What is the Anna Bhagya scheme?
The 'Anna Bhagya' scheme, a key pre-election promise of the Congress party, was implemented shortly after the party came to power in 2023. The scheme aims to tackle food insecurity by providing 10 kg of free rice per month to every member of BPL households. However, following the Centre's refusal to supply additional rice, the state modified the scheme, offering a direct benefit transfer (DBT) of ₹34 per kg for 10 kg per person.
Despite the switch to DBT for the additional 5 kg, the base 5 kg per person under the National Food Security Act is still delivered as physical grain, reliant on the very transport operations now on hold.
The scheme, implemented by the Department of Food, Civil Supplies and Consumer Affairs, plays a central role in Karnataka's welfare delivery. Beneficiaries include those holding BPL and Antyodaya Anna Yojana cards, with no limit on the number of eligible individuals per household.
Food security at risk if strike persists
If the deadlock continues, ration shops across the state could soon run dry, putting millions of low-income residents at risk of food insecurity. The government has yet to respond to the concerns raised.