THIRUVANANTHAPURAM: Supplyco has started negotiations with three state governments for purchasing essential items. Rice and red chilly are among the targeted commodities to be bought from Andhra Pradesh, Telangana and Karnataka, said a source.
Food Minister G R Anil had earlier met his counterpart in Telangana and discussed direct procurement of commodities from that state. The minister’s office said the direct purchase would reduce the cost, and maximum subsidy can be offered to the consumers. The Telangana government has given an assurance to procure the commodities through a government agency.
The state government had recently revised the prices of 13 essential commodities sold through Supplyco. The financial crisis forced the government to revise the prices fixed in 2014. The present decision is to offer these commodities at rates 35 pc lower than the market price. The government now plans to make the maximum direct purchase so that Supplyco can offer maximum subsidy.
The Central government has not responded favourably to the state government’s demands on Open Market Sales Scheme (OMSS) and tide over share of food items. The state government had asked the Centre to allow it to participate in the OMSS for rice purchase from the Food Corporation of India (FCI). The OMSS of FCI is aimed at supplying rice at subsidised prices.
State govt sanctions Rs 203.9 crore
The state government has sanctioned Rs 203.9 crore to the Supplyco. A statement issued by Finance Minister K N Balagopal said Rs 195.36 crore was sanctioned as state subsidy for paddy procurement and Rs 8.54 crore as handling charge. The Centre is yet to sanction the minimum support price for procurement.