Most of these reserve grains are already being diverted for Ethanol production once they "expire". It is sold to these Ethanol producers at low rates (subsidised). The Ethanol producers however sell these grains and make a tidy profit. They also buy back near-rotting grains dirt-cheap from these same suppliers and other markets. And then make Ethanol from it. The suppliers who bought the rice illegally, repack it and sell it again to the government! A good example of indian systemic corruption - Ethanol manufacturing: The ₹1,000 crore rice scam explained - https://www.youtube.com/watch?v=5lMw47iw6PQ