Arrears of around one crore rupees; crisis in state as contractors warn to stop delivery of ration goods

THIRUVANANTHAPURAM: The ration foodgrain transportation contractors have warned that they will completely stop the transportation of ration goods in the state due to the delay by the state government in clearing the arrears. The contractors said that they will stop the transportation of ration goods from tomorrow. Due to this, the distribution of ration is likely to get interrupted in the state.

According to the contractors, the government has to pay them nearly Rs 100 crore as arrears. They contacted Supplyco several times regarding this matter but to no avail. The contractors said that they are suspending the service because of this reason.

Meanwhile, supply companies recently boycotted Supplyco's tender en masse as they are owed crores in arrears. Only four companies participated in the tender. As per the guidelines of the Central Vigilance Commission and the Store Purchase Manual of the State Government, a tender cannot be awarded unless more than the specified number of companies participate. Usually, more than 80 companies participate every year.

Only two companies submitted bids for subsidized items like chilli, black gram and Jaya rice. Three companies gave tender for Green gram. The asking price is higher than the last tender. At the same time, commodity prices remain lower than last time. More suppliers are unlikely to participate even if the tender is invited again. Supplyco cannot go to the production centres and procure items directly.

Last month, the Food Department had written to the Finance Department to allocate Rs 500 crore for market intervention, but to no avail. The goods were delivered on Onam when the suppliers were to get 500 crores. Minister GR Anil had promised to pay the money after Onam but only a small amount was received. The government has to pay Rs 1525 crore to Supplyco for market intervention alone. Food Minister GR Anil said that the government was trying to solve the problem by discussing it and hoped that the discussions would yield results.