Market intervention during Onam

Although there were concerns about government intervention in the market during the Onam season, the authorities took necessary action as the festival approached, bringing great relief to the people. As many as 5424 Onam markets have been opened across the state by Supplyco, Consumerfed, and Hortcorp. The speciality of Onam markets is that goods are available at subsidized rates compared to the public market. These markets primarily cater to the demand during the Onam festival. However, even after the Onam season, the stores operated by Supplyco and Consumerfed continue to function regularly, providing subsidized goods to the public. The recent delay in receiving arrears and financial assistance from the government had significantly impacted the operations of Supplyco stores. Due to this, the stores faced a shortage of essential commodities, leading to severe criticism from the public who rely on these stores for their daily needs. Government intervention is the most effective way to control price hikes in the public market during Onam season. While only a segment of the population may directly benefit from these Onam markets, such markets significantly contribute to controlling price inflation, thereby benefiting the wider public. The market presence of government agencies like Supplyco and Consumerfed effectively curbs price hike to a great extent. No one can ignore Kerala's achievement in this sector. Thirteen essential commodities are sold at subsidized rates in Supplyco stores. Besides the subsidized essential commodities, other items sold in these stores also have a significant price reduction, ranging from 10 to 30 percent, compared to the public market. Similarly, Consumerfed sales outlets also offer goods at subsidized rates. The prices at Consumerfed outlets are almost comparable to those at Supplyco stores, with only minor variations.

Since a significant amount of money reaches most people's hands during the Onam season through various means, price hikes tend to become less of a concern. Additionally, as people are more focused on spending money to enjoy the festive atmosphere, there are fewer individuals who worry about the expenses. The Onam season sees the highest sales in the state, which naturally leads to an increase in the government's tax revenue. Since a portion of the benefits given to the people return to the government as tax, it doesn't harm the government to support agencies like Supplyco.

The government, which shows interest in controlling price hikes during the Onam season, should also prioritize ensuring effective market intervention throughout the year. The services of institutions like Supplyco are essential for the common people. If the relief measures given during festive seasons are made available throughout the year, it would benefit the poor and low-income earners. The main complaint often raised against Supplyco is the shortage of essential commodities. The institution can only sustain itself if the government compensates for the losses incurred by selling goods at subsidized rates. The government often evades this responsibility, citing financial difficulties. Simply stocking up on essential commodities for Onam is not enough; they should be made available throughout the year, even after Onam. Concrete measures need to be taken to achieve this.

During the state-level inauguration of Onam markets, Chief Minister Pinarayi Vijayan asserted that Kerala is ahead of other states in public market intervention. In order to validate this assertion, Supplyco's activities must be expanded and made more robust and long-lasting than their current state.