Supplyco runs out of subsidized goods despite suggestion to increase price

THIRUVANANTHAPURAM: There are only a few subsidized goods at the outlets of debt-ridden Supplyco. Most Maveli stores have only one or two of the 13 subsidized items.

Supplyco is under such financial burden that it cannot sell the subsidized goods at current prices. Out of Rs 1425 crores to be paid, the government allocated only Rs 10 crores in the budget. The report of the expert committee on increasing the price of subsidized goods has been in the hands of the government for months. The suggestion is to charge 25-30 percent less than the market price for subsidized goods. The government fears that if the report is approved now, it will arm the opposition in the parliamentary elections. The LDF manifesto promised not to increase the prices of 13 items.

When the supply of subsidized rice stopped and the price skyrocketed, the central government started supplying Bharat rice at the rate of Rs.29. The government is not distributing subsidized rice to counter the allegations of election manipulation.

Price of rice sold at Supplyco:

Jaya: Rs 25

Short: Rs 25

Floor: Rs 24

Pachari: Rs 23

Rs1425 crores-Money to be paid by government to Supplyco

Rs 792.20 crores-Money owed by Supplyco to suppliers