THIRUVANANTHAPURAM: Supplyco will not be able to start Christmas and New Year fairs if the government does not release funds immediately.

Supply companies boycotted Supplyco's tender en masse as they are owed crores in arrears. Only four companies participated in the tender. As per the guidelines of the Central Vigilance Commission and the Store Purchase Manual of the State Government, a tender cannot be awarded unless more than the specified number of companies participate. Usually, more than 80 companies participate every year.

Christmas is barely two weeks away. If the Christmas and New Year fairs don't start at least a week before that, it will be a shame for the government. Only two companies have submitted bids for subsidized items like chilli, black gram and Jaya rice. Three companies gave tender for Green gram.

The asking price is higher than the last tender. At the same time, commodity prices remain lower than last time. More suppliers are unlikely to participate even if the tender is invited again. Supplyco cannot go to the production centres and buy directly.

Last month, the food department had written to the finance department to allocate Rs 500 crore for market intervention, but to no avail. The goods were delivered on Onam when the suppliers were to get 500 crores. Minister GR Anil had promised to pay the money after Onam but only a small amount was received. The government has to pay Rs 1525 crore to Supplyco for market intervention alone.

Tender amount will increase the liability

The asking price for wheat is 125.36 to 126.36 per kg. Last time the tender was given for Rs.120. The price of chillies ranges from 217.86 to 225.46 per kg. Last time the contract was given for Rs.215. Green gram has been quoted at Rs 139.89 to Rs 170 per kg. The last tender awarded was for Rs.125. If these prices are accepted then Supplyco will have to bear more liability.

"Suppliers are to receive Rs 800 crores for goods delivered including for Onam. We can deliver the goods if we get at least half the amount'

-Rahim, Owner of Hafsar Trading Company

"The government is trying to solve the problem by holding discussions. Hopefully, it will bear fruit'

- GR Anil, Food Minister