100 crores owed to contractors; grain supply to ration shops stopped

THIRUVANANTHAPURAM: Grain supply to ration shops in Kerala has stopped. The transporting contractors stopped the distribution of grains on Saturday as the nodal agency Supplyco has not paid the transporting contractors for four months. The transporting contractors are the ones who transport the grains from FCI to NFSA godowns and from there to ration shops. Although there is stock for this month's distribution in the southern districts, many other districts have only 15 days' worth of grains in stock. If the contractors continue their non-cooperation, the public distribution sector will come to a standstill.

Transporting contractors say that they are yet to receive more than Rs 100 crore, including the three-month amount from February to April and 10 percent of the 12-month amount from last April. Although they were told that the 10% amount to be paid monthly would be released after the audit is completed, it has not been received yet. The Kerala Transporting Corporation Association, an organisation of contractors, had written to the Supplyco chairman on the 8th, stating that the goods would be delivered to the ration shops till the 10th of this month and that the outstanding amount should be released before that. The supply was stopped on Saturday evening after no action was taken. The contractors had gone on strike in January to disrupt supply when the three-month amount became outstanding.

"The reason for the huge arrears is that the amount allocated by the government to pay the contractors is diverted and spent by Supplyco."

- Gopalakrishnan, Treasurer