THIRUVANANTHAPURAM: The grain supply to the ration shops and FCI godowns was disrupted after the ration transportation contractors went on an indefinite strike. Ration shops have only a few days' stock left. If the strike goes on, the ration distribution will stop.
The government owes about Rs 100 crores to contractors for the distribution of ration goods. The contractors' association has demanded that at least 34 crores should be paid.
According to the Central Food Security Act, the government has to pay Rs 26-30 crore to contractors as transport cost of ration goods. Ten percent of this will be paid only on completion of the audit. The remaining 90 percent is allotted to contractors. The ten percent has not been paid since 2021. The reason given by the food department is that the audit has not been completed. The amount from September to December has also not been given in addition to this. Due to non-payment, porters, doorstep delivery workers, fuel pump owners and drivers have not been paid for months. Many of the contractors took bank loans to perform doorstep delivery. They are under threat of foreclosure due to non-payment.
Last month they had decided to go on an indefinite strike but withdrew based on the discussion of Supplyco CMD. The withdrawal was based on an assurance that September, October and November dues would be paid by December 27. However, only 14 crores were sanctioned. The government informed that they would pay the balance on January 10, but contractors did not receive the money. That is how the strike started.
"The 50% distribution in January was completed with the assurance of the minister and the CMD that they would pay the money. We gave time till Thursday. We are facing unfair interest and revenue recovery proceedings by the Welfare Board."
- Fahad Bin Ismail
Kerala Transporting Contractors Association (NFSA)