Kerala's ration distribution faces standstill amid protests; Fin minister to address crisis

Thiruvananthapuram: If the Finance Department fails to extend support, the state’s ration distribution system will come to a complete standstill. The government’s financial crisis, coupled with strikes by organisations linked to the public distribution system, has put the Food Department in a tight position.

Ration shops are currently empty as contractors responsible for doorstep delivery have gone on strike. Adding to the crisis, ration shop dealers have announced that they will close shops starting Monday in protest against the failure to revise their wage package. If the outstanding dues to the company that installed the e-POS (electronic point of sale) machines are not cleared, they too are likely to stop services. The Food Department is attempting to resolve the crisis by holding discussions with the Finance Minister.

In response to a question in the Legislative Assembly on Thursday, Minister for Food and Civil Supplies G R Anil indicated that the wage package revision will not happen immediately. He stated that discussions on the matter are ongoing and any decision will have to take into account the government’s financial situation.

Ration distribution has already been almost entirely halted for the past three weeks due to the lorry owners’ strike. The government has been providing ration supplies in certain areas by using reserve stocks and combination billing through e-POS machines. Officials claim that partial payments to the lorry owners have enabled distribution in some regions. However, if the dealers proceed with their strike, distribution will cease in these areas as well. The outstanding amount to the lorry owners is estimated at around ₹40 crore.

The company that installed the e-POS machines has not been paid for eight months. There is also concern about whether the contract will be renewed after January 31 without clearing the dues. 

Meanwhile, the Central government’s plan to implement a scheme to transfer cash directly to beneficiaries’ accounts (Direct Benefit Transfer) instead of providing food grains has raised fears of the collapse of the public distribution system. The state government has expressed its opposition to DBT.

Hope for Rs 50 crore relief

Discussions with the Finance Minister to address the crisis are expected to take place on Friday or in the following days. The Food Department is hopeful of receiving ₹50 crore, part of which will be allocated to settle the dues of the lorry owners.