Kerala Government to Implement 35% Subsidy on Supplyco Items with Timely Revisions

The Kerala government has announced a 35 percent subsidy for products available through Supplyco stores. This decision marks a significant shift, and it is expected to impact the prices of items that are currently sold at higher subsidized rates. The move aims to strike a balance between providing subsidies and addressing the financial challenges faced by the state.

The cabinet has decided to conduct timely revisions of subsidy rates every six months based on market prices. This approach ensures that subsidies align with the prevailing economic conditions and prevent financial losses for the state government.

The decision follows the recommendations of an expert committee chaired by Dr. Ravi Raman, appointed by the government to review and streamline subsidy practices. The committee highlighted the need for dynamic subsidy revisions to prevent substantial losses incurred due to fixed subsidies.

While the finance department initially suggested a 25 percent subsidy rate, the cabinet ultimately settled on a 35 percent subsidy for the time being. This decision reflects the government’s commitment to finding a sustainable balance between supporting consumers and managing state finances.

The revised subsidy rates are expected to be implemented across Supplyco stores in the state shortly, offering consumers a clearer understanding of the actual costs of the products they purchase.