Supplyco charges state up to 20% more than actual prices for items in free Onam kit

Supplyco charges state up to 20% more than actual prices for items in free Onam kit

Thiruvananthapuram: Supplyco has directed depot managers to prepare bills to be submitted to the state by showing amounts that are up to 20 per cent more than the purchase price of items being distributed through the free Onam kits in the state.

It is alleged that Supplyco gave the direction to draw more money from the state government in the name of the free kits scheme. But Suppyco said that bills are being prepared with higher prices to meet additional costs.

The price estimated for a kilogramme of jaggery is Rs 83. That is also the price mentioned for jaggery in the kits being distributed.

However, tender documents reveal that Supplyco bought jaggery for Rs 50 per kg. But, as per the instruction of Supplyco’s marketing manager, that price is not to be recorded in the bill. Instead, the bill should be prepared by adding 11% margin to the purchase price.

In other words, the selling price of jaggery should be mentioned as Rs 55 in the bill. As a result, Supplyco will get an additional Rs 4.45 crore for the 88 lakh kg of jaggery it distributes through the kit.

It has directed that poppadom (papadam), vermicelli and cloth bags be charged up to 20 per cent extra as margin. It is not clear why Supplyco is charging an extra amount when the government said it will bear the cost of the kit, including the packing charge.

The corporation has justified the additional charge saying it has to bear the extra costs involved in distributing the free kits, including transporting them to the public distribution system (PDS) shops. Moreover, the sale price has to be recorded in advance if the items remaining after the free kit distribution are to be sold later through Supplyco’s outlets.

These are the two reasons why it has mentioned higher prices in the bill, Supplyco said.

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