Supplyco crisis: Food Dept urges Rs 500 Cr ahead of Onam, Finance Dept allocates Rs 100 Cr

Thiruvananthapuram: Following the assessment by both the CPM and CPI that the SupplyCo crisis caused a setback in the recently concluded Parliament elections, the Finance Department has decided to allocate funds to the Food Department to resolve it. An order has been issued, allotting a sum of Rs 100 crore to SupplyCo for purposes, including distribution of arrears to suppliers ahead of Onam.

However, the amount which the Food Department had requested as an immediate relief was Rs 500 crores. With Onam approaching, the Food Department believes the current allocation is insufficient. There are dues of Rs 400 crores to suppliers, with many not participating in tenders. Most shops have only less than 10 subsidised items. 

Meanwhile, the Indian Department of Food and Public Distribution (DFPD) is advocating for a change in Kerala's ration distribution system, aiming to reduce costs.

The Food and Civil Supplies Department had earlier issued a letter to the Finance Ministry, seeking Rs 500 crores for solving the Supplyco crisis. In the letter, it was informed that the agencies and companies providing food items are not cooperating with Supplyco since the Department owes them around Rs 1,500 crores.

The main demand is that the primary share of the money that the state government is going to borrow from the Centre shall be allotted to the Supplyco. Despite continued efforts, adequate supply of food items could not be ensured in Supplyco as the outlets are running short of supplies. Unless adequate supply of food items are ensured, the Supplyco would not be able to benefit from the price rise in the general market, it is pointed out. 

Though the government had tried to procure food items through the public distribution systems of neighbouring states like Karnataka, Telangana and Andhra Pradesh, the efforts have not succeeded.