supplyco

THIRUVANANTHAPURAM: The cost of essentials is skyrocketing with no respite. These are times when people look for solace in Supplyco. However, the Kerala government undertaking food supplies corporation is mired in a debt crisis that is worsening with every passing day.

The arrears left for the government to pay Supplyco stands at Rs 4389 crores. If the money fails to reach Supplyco, the awaited Onam season will go into disarray. An inexplicable hike in the prices of essential food items is presaged.

Supplyco was brought in to fight inflation in 2016, but the government still owes Rs 3000 crore of that time to the corporation. For different schemes of government, Supplyco brought groceries including rice but was not paid their emptied Rs 1389 crore. In the last seven years of LDF rule, Supplyco spent a wholesome Rs 3780 crore selling 13 essential food items at subsidy rates to the public. However, the government paid the corporation just Rs 780 crore for the spent Rs 3780 crore.

And now, Supplyco has requested the government to expedite financial assistance of at least Rs 1000 crore or else warned about the corporation going to a standstill. For buying essential items, Supplyco spends Rs 200 crore monthly. Supplyco now has a Rs 400 crore debt with other distributors. If the debt remains unpaid, more such wholesalers will break loose from Supplyco's hands.