THIRUVANANTHAPURAM: The LDF leadership on Friday accorded in-principle clearance for the increase in prices of 13 essential items sold through Supplyco in the state. Civil Supplies Minister G R Anil, who was called to the LDF state committee meeting on Friday to present the situation, said the rates will be revised nominally in a timely manner.
The minister will time the price increases taking into account the political atmosphere, including the coming Lok Sabha election. The 2016 LDF manifesto had guaranteed the supply of 13 essential goods at subsidised rates, at 25% below the market price. However, the increase in the market price of many of the goods, including rice and chilli, left Supplyco with huge losses.
This prompted the department to approach the government for an increase in the subsidy rate. “The only increase will be to the subsidy rate fixed in 2016,” the minister said. “Supplyco will not increase the price of essential goods in keeping with market rates. The supply chain’s existence is essential to prevent the hike in prices. For that a modification is essential,” he told reporters after the meeting.
Anil said the government sells 10kg of rice for Rs 25, when the open market rate is Rs 45. “We also supply chilli at `90/ kg, while the market rate is Rs 290/kg. Supplyco sought a nominal increase in the subsidy rate to survive. We will not burden people with the hike neither make their life miserable,” he added.
The decision has already invited criticism. BJP state chief K Surendran termed the decision a major challenge to the people of the state. “The increase in prices of essential commodities comes as a major setback to the people following the hike in power and water tariffs,” Surendran told mediapersons.