THIRUVANANTHAPURAM: The Food Department has written to the Finance Department requesting to allocate Rs 500 crore to prepare Supplyco for market engagement. Later, Minister GR Anil held discussions with Finance Minister KN Balagopal. The Finance Minister was informed that the stock of rice is also almost exhausted, with the supply halted due to Rs 719 crore due to suppliers.

Earlier, GR Anil had held a discussion with Minister V Sivankutty for the release of Rs 200 crores to be paid by the Education Department.

2500 was borrowed from the bank consortium by pledging the assets. Even the rice in the field is under mortgage. The Finance Department, which had allocated Rs 200 crore for paddy procurement, has not given any amount for market intervention after Onam. As supplyco is running out of subsidized goods, the price of food items in the public market is skyrocketing.

Supplyco owes Rs 719 crore in total to more than 500 distribution companies in 5 states including Kerala. Companies are in a situation where they are not even able to pay GST as they have not received money for five months. On Kerala Piravi day, a demonstration was held at the Supplyco headquarters demanding immediate payment of dues.

Should get

Market intervention: 1525 crores

Sanctioned: 120 crores (before Onam)

Education Department: 200 crores

Kit distribution: 158 crores

Will be raised in LDF

CPI had decided to raise the issue in the LDF meeting if the finance department did not release the amount. Government had withdrawn from the move to entrust cooperative societies with rice procurement when the CPI ministers raised strong objections in the cabinet meeting on the issue. Supplyco is in charge of procurement now. CPI ministers will continue the same stance on market intervention.