THIRUVANANTHAPURAM : In a major policy shift that could make life miserable for common people, the state government has decided to increase the price of 13 essential items sold through Supplyco outlets. Now the government will provide a subsidy of up to 35% of open market rates. Therefore the price of essential items will change according to the price fluctuations in the market.
A decision was taken by the state cabinet to change the fixed rate system introduced when the first Pinarayi Vijayan government came to power in 2016, to arrest price hike.
Instead, the government brought back the subsidy rate system that existed before 2016.
In 2016, the Left government had taken a policy decision not to increase the price of essential items, as part of an effort to arrest price hike.
The government fixed the rate that existed in 2014 (26% less than the then market price) for these items, and it continued till now. However, considering the huge price hike in the open market, the cabinet gave its nod to go for a policy change.
The government's decision to hike the prices of essential items sold through Supplyco created a major uproar in the assembly on Thursday.
Leader of Opposition VD Satheesan questioned the decision through a submission. He came down heavily on the government for keeping the assembly in the dark about the decision. The minister announced the decision outside the assembly, he said.
Replying to the Opposition charge, Civil Supplies Minister G R Anil said that the public can buy the specified 13 items for Rs 940 from Supplyco outlets whereas in the open market the price for these items would be Rs 1,446. He claimed that the consumer will get a subsidy benefit of Rs 506. “This is a model market intervention to give maximum benefits to consumers. The government took the decision based on its conviction that to maintain this system in a sustainable and permanent state there should be scientific and logical modification of the subsidy mechanism,” the minister told reporters later.
He also said that, in 2013 and 2014 the UDF government increased the price of these items three times.
“The Supplyco is facing a huge financial liability of Rs 35 crore per month and Rs 425 crore per year. Each year around 35 to 40 lakh families rely on the Supplyco. The financial liabilities of various departments to the Supplyco comes to Rs 1,525 crore,” he said.
At present, Suppplyco suffers a financial burden close to Rs 425 crore per annum through market intervention measures.
New price list of 13 essential goods
Moong dal- Rs 92
Black gram- Rs 95
Chana- Rs 69
Red Cow Peas- Rs 75
Toor Dal- Rs 113
Chili (half kg)- Rs 82
Coriander (half kg)- Rs 39
Sugar (1kg)- Rs 27
Coconut oil (0.5 kg) - Rs 55
Jaya Rice- Rs 29
Matta Rice- Rs 30
Kuruva Rice- Rs 30
Raw Rice- Rs 26