Kerala is facing a severe disruption in its ration distribution system due to an ongoing financial crisis, with protests intensifying as the Food Department struggles to keep operations afloat. The state’s ration shops are running empty as contractors responsible for doorstep delivery have initiated strikes. In addition to this, ration shop dealers have declared they will shut down their shops starting Monday, protesting the government’s failure to revise their wage package. The situation is further compounded by the mounting dues owed to the company that installed the e-POS (electronic point of sale) machines, with the possibility of this company halting its services if the overdue payments are not cleared soon.
The state government, facing this mounting crisis, has sought intervention from the Finance Minister. G R Anil, the Minister for Food and Civil Supplies, has stated that while discussions are ongoing regarding the wage package, an immediate revision may not be possible due to the state’s financial constraints. Ration distribution has been severely affected for nearly three weeks because of a strike by lorry owners, who are owed approximately ₹40 crore. Although partial payments have allowed some regions to receive supplies, the situation will worsen if dealers follow through with their strike plans.
The outstanding dues to the company behind the e-POS machines have remained unpaid for eight months, creating uncertainty over whether the contract will be renewed after January 31. Meanwhile, the state government is concerned about the central government’s push for a Direct Benefit Transfer (DBT) scheme to replace food grain distribution. The state has expressed strong opposition to this proposal, fearing it could jeopardize the entire public distribution system. With the Finance Minister set to address the crisis soon, the Food Department remains hopeful that a relief of ₹50 crore may be provided to settle the dues and restore the ration distribution system.
