Price of ration rice for non-priority holders likely to increase in Kerala

Thiruvananthapuram: A state government committee has recommended increasing the subsidised price of ration rice for non-priority category. The proposal suggests raising the current rate from ₹4 per kg to ₹6 per kg. The government procures rice at ₹8.30 per kg and covers the remaining subsidy. If the price is increased, an additional ₹3.14 crore per month could be generated.

The committee has also recommended revising the operational hours of ration shops to 9 am–1:30 pm and 4 pm–7 pm.

It may be noted that the Union government does not provide any assistance for distributing rice to both subsidised and non-subsidised non-priority cardholders. For Non-Priority Non-Subsidised (NPNS) rice, the government pays ₹8.30 per kg to the Food Corporation of India (FCI), while ration dealers charge ₹8.90 per kg. Increasing the price would generate an additional ₹50 crore annually for the state exchequer.

A portion of this additional revenue could be used to increase dealers' wages and strengthen the welfare fund, according to the committee’s recommendation. The panel has also suggested closing 3,782 ration shops. However, as traders have opposed the move, discussions will be held, Minister GR Anil said.