Government not giving money; subsidised commodity prices increased again by Supplyco

THIRUVANANTHAPURAM: Supplyco has again increased the prices of subsidised items including black-eyed peas, jaya rice, raw rice and coconut oil due to a lack of money to buy goods.

The price hike was announced this time without giving any hint. The prices of 13 subsidised items were increased in February. Thereafter, the price of matta rice was increased from Rs 30 to Rs 33 per kg and sugar from Rs 27 to Rs 33 per kg just before Onam.

Most of the outlets had run out of stocks of subsidised items, except rice, by the end of November. The sale of non-subsidised goods has also come down. This is because the wholesale suppliers have partially stopped the supply. Supplyco owes Rs 600 crore to the suppliers. Suppliers have also informed that they will not participate in the tender if the dues are not received.

There was a similar crisis before Onam. Suppliers were pacified then by paying Rs 100 crore. The government had sanctioned Rs 225 crore to Supplyco as emergency assistance for Onam. However, till December, Supplyco had received only Rs 125 crore. Another Rs 50 crore was received in January. The finance department is washing its hands pointing out the financial crisis. Though the food department sent a letter to provide Rs 30 crore per month as an option, no favourable decision was taken.

New Price

(Per kilogram; old price in brackets)

Black-eyed peas...................... 79 (75)

Jaya Rice.................................. 33 (29)

Green........................................ 29 (26)

Half a litre of coconut oil........ 65 (55)