Thiruvananthapuram: The ongoing subsidies for everyday commodities in Supplycos will be scrapped. An expert committee presided by Dr K Ravi Raman (Planning Board member) has recommended price revisions every three months as per market trends. 

The committee has decided to provide up to 30 percent subsidy on various items. The report is likely to be considered in the cabinet meeting on Wednesday.

At present, Supplyco is providing subsidies for 13 items. But the current practices are allegedly putting Supplycos under immense financial stress. For example, chilly which is sold for Rs 220-Rs 230/kg in the market is available in Supplyco stores for just Rs 75 (per kg).  Even while the prices are skyrocketing, the subsidy rates in Supplycos have remained constant over the last seven years. Infact, while comparing with the current market trends, the current subsidy rates in Supplyco stores exceed over 50 percent. This isn’t feasible anymore.  

Another recommendation that is being put forward is to increase the range of subsidised items available in stores. If it is done, then the stores will be able to provide alternate options to the customers in case a few items are not available from racks.

Maveli stores running in losses to be shutdown

Maveli stores that are running in losses are likely to be shut down. To make Supplyco stores more profitable, Super Bazars will be opened soon.

At present, there are over 600 functional Maveli stores in the state. Of these, around 60 stores are running in losses. Hence, no new Maveli stores will be sanctioned in the state. Instead, the stores running in losses will be converted to hi-tech ‘Signature Marts’. Hence, the chain of Super Bazars are expected to reap profits for the debt ridden corporation.