KOCHI: Aggrieved by the prolonged delay in the release of pending payments, suppliers of food grains and various commodities to the Kerala State Civil Supplies Corporation (Supplyco) staged a protest in front of its headquarters in Gandhinagar, Kochi, on Wednesday. The demonstrators included agency owners from Andhra Pradesh, Karnataka, and Tamil Nadu. One of the protesters, Amith Sathyan, voiced their concerns, saying, “We have decided to initiate an indefinite hunger strike next week if the government fails to release the outstanding dues.”
“Supplyco has not settled our payments since May 2023, and the outstanding arrears have now reached Rs 720 crore. In August, Civil Supplies Minister G R Anil had convened a meeting, urging us to continue supplying essential items, despite Supplyco’s delayed payment of Rs 350 crore. We trusted the minister’s assurance that the funds would be released immediately after Onam, considering the festive season. However, the government’s delay has pushed the arrears to Rs 719.10 crore as of November 1,”Sathyan said.
Many suppliers have resorted to pledging their assets and securing overdrafts from banks to maintain a regular supply to Supplyco.
Due to the delayed payments, they are struggling to meet loan interest payments, and banks have sent notices. Additionally, the GST department has frozen their accounts and threatened to initiate revenue recovery proceedings for non-payment of taxes, according to Pramod Krishna, another supplier.
Sreenivasa Reddy, owner of Sree Lakshmi Rice Mills in Rajamundri, Andhra Pradesh, who supplies Jaya rice to Supplyco, highlighted the crisis he faces as the outstanding arrears have mounted to Rs 25 crore.
He noted that, in the past, Supplyco would settle the amount within two months of delivery. “But now, they are not even ready to give an assurance on settling the dues.”
A visit to the Supplyco store in Gandhinagar, Kochi, revealed that, among the 13 subsidized commodities, only chickpeas and matta rice are currently available. A senior officer at the office of Civil Supplies Minister G R Anil acknowledged the issue, stating, “It is true that Supplyco owes approximately Rs 650 crore to the agencies. We have raised this matter with the government and anticipate the prompt release of funds.”