Financial Boost for Supplyco: Government Allocates Additional Funds

In a significant move, the Government of Kerala has stepped in to address the financial challenges faced by Supplyco, a state undertaking tasked with providing essential food grains at affordable prices. Despite its commendable role in stabilizing food prices for consumers, Supplyco has accumulated a substantial debt of Rs 1400 crores, impacting its operational efficiency.

Recognizing the need to alleviate this financial burden, the government has taken proactive measures to provide additional funds. The Finance Minister, K.N. Balagopal, announced an extra allocation of Rs 100 crore, with the food department receiving 71 crores and other departments getting 29 crores. This decision aims to strengthen the public distribution sector, enhancing the budget allocation for Supplyco from 1930 crores to 2001 crores.

Finance Minister Balagopal hinted at further financial support for Supplyco, drawing attention to the example of the Kerala State Road Transport Corporation (KSRTC), which received around 4000 crores despite a budget allocation of 900 crores. This move signifies a departure from the government’s earlier stance on Supplyco.

While acknowledging the financial challenges, the Finance Minister assured that the government is committed to providing subsidies through Supplyco. The cabinet’s decision to adjust prices for 13 subsidized items, including rice and sugar, reflects a pragmatic approach in line with market dynamics.

Despite the debt and challenges, Supplyco continues to offer subsidized products at rates 35% below the market price. The government’s decision to align the prices of subsidized products with market fluctuations is a strategic move, indicating a pragmatic and sustainable approach.

Additionally, steps are urged to settle outstanding dues owed to Supplyco, particularly the Education Department’s Rs 250 crore for providing rice in the midday meal scheme. Addressing these financial commitments promptly will contribute to restoring Supplyco’s operational efficiency and ensuring a steady supply of essential commodities to the public.

In conclusion, the government’s allocation of additional funds and its commitment to addressing financial obligations signify a positive step towards revitalizing Supplyco and sustaining its crucial role in ensuring affordable food access for the people.