Will subsidised sugar vanish from Kerala ration shops? Scheme faces uncertain future

Kasaragod: Subsidised sugar distributed through ration shops has been a crucial support for thousands of low-income families in Kerala. But after the scheme expired in March and fresh stock failed to reach ration depots, uncertainty now surrounds the future of the monthly benefit for AAY cardholders.

AAY cardholders in Kerala had been receiving one kilogram of sugar every month through ration shops at a subsidised rate of Rs 27.

However, the distribution process was recently disrupted after sugar allocated for ration distribution was removed from the e-POS system used in ration depots. As a result, even ration shops with available stock were unable to distribute sugar over the past few months.

Following the issue, the government allowed existing sugar stock allocated for the 2025-26 period to be distributed to eligible beneficiaries on a first-come, first-served basis.

Government issues fresh instructions

The Public Distribution and Consumer Affairs Commissioner has now directed ration shops to distribute sugar only through the biometric e-POS system.

Authorities have also instructed ration depots with excess sugar stock to transfer supplies to shops facing shortages so that pending distribution can be completed.

Sugar has since been re-added to the e-POS system, and officials have been directed to complete the distribution process and submit reports by the end of the month.

Scheme yet to receive extension

Despite the temporary arrangements, uncertainty continues over the future of the subsidy scheme.

The tenure of the programme providing one kilogram of sugar per month to AAY families officially ended on March 31, 2026, and no extension has been announced so far.

With sugar allocations for April and May yet to arrive, concerns are growing that the scheme could be discontinued completely.

Yellow ration cardholders fall under the National Food Security Act, under which the central government provides only part of the subsidy amount for sugar distribution.

The remaining subsidy burden has to be covered by the Kerala government.

The central subsidy is released only after Supplyco procures sugar, distributes it through ration shops and submits the necessary accounts and distribution records.