The basic principle of any business is to proceed without incurring a loss, even if it does not generate much profit. Supplyco, which has been associated with the daily lives of the common people in the state for many years, has provided commendable service through smart market interventions and has also received deep support from the government. As the government is under various financial pressures, the subsidy allocation for Supplyco has also come to a standstill. For the past two years, the organization has been moving towards crisis day by day. 1526 crore rupees is due from the government for providing daily-use items to the people at subsidized rates. 717 crores for goods purchased from other states have to be settled. Supplyco reached a real crisis when the suppliers decided that they could no longer provide goods on credit. Supplyco stores have been operating with empty racks for the past several weeks as government aid to cover losses and supply subsidized goods has not been received. Perhaps the government is aware of the reality that it cannot go ahead without increasing the prices of subsidized goods, so they have given permission to increase the prices of goods. It is only natural that people feel disgruntled and angry that SupplyCo is abandoning them when daily life is made difficult by the suffocating price hikes.

Thirteen items including four kinds of rice, pulses, chilli etc. were available at subsidized rates. Now one will have to pay a higher price to buy these types of goods as well. With this, the government's objective of controlling the price rise through market intervention is partially abandoned. Last day, the Left Front Coordination Committee gave permission to the Civil Supplies Corporation to increase the prices of essential commodities. There was no indication of how much the price increase could be. The decision is left to the Civil Supplies Department. Supplyco claims that there is a subsidy liability of at least Rs 500 crore happening every year. Supplyco's position that the price of goods had to be increased because the government did not come forward to compensate for this, cannot be said to be wrong. No firm can survive with continuous losses in business. Actually, it was the government that should have saved Supplyco from the current crisis. If Rs 500 crore had been provided without delay, the rise in prices of essential commodities could have been avoided.

A breakdown of a government mechanism that was created to protect the common man from the sharp rise in prices in the public market must be avoided at all costs. It is not too difficult for the government to allocate Rs 500 crore a year as a subsidy to SupplyCo amid the many expenses. The government should not forget that through this they are fulfilling a huge social responsibility.