LDF approves proposal to hike price of essential items distributed via Supplyco

Thiruvananthapuram: A meeting of the Left Democratic Front (LDF) has approved the proposal to increase the retail price of 13 essential commodities with subsidies that are distributed through Supplyco. The Food and Civil Supplies department will decide on the percentage hike in prices for each item.

LDF convener E P Jayarajan told the media after the meeting that the coalition was yet to decide on the price hike and that the Food and Civil Supplies Department was entrusted to study the proposal. However, Civil Supplies Minister G R Anil responded that the revision of prices was a normal thing and that the LDF had approved Supplyco’s demand as it was reasonable.

Supplyco had earlier submitted a letter to the state government pointing out that its intervention in the open market to check the price rise had resulted in huge financial liabilities. The letter also sought an immediate hike in the retail prices of various items. The agency is due to receive Rs 1525 crore from the state government on various accounts, including the subsidy given for essential items over the last 11 years and the distribution of free kits, etc.

With the agency defaulting on its payment to the distributors, it no longer receives the stock of several essential items, and the consequent fall in sales has taken the daily revenue figures to Rs 4 crore from Rs 10 crore.

Subsidy items
The 13 items that are distributed with a subsidy through the Supplyco stores are: Jaya rice, Kuruva rice, Matta rice, raw rice (pachari), sugar, coconut oil, red chilli, coriander, green gram, black gram (uzhunnu), chickpea, red cow peas (vanpayar), and toor dal (thuvarapparippu). In addition, a vast array of items, from tea and coffee to spices and coconut oil under the Sabari brand, are sold at lower rates than on the open market. The agency has also demanded a proportionate rise in the prices of these items.