Supplyco saves Rs 100 crore by ceasing sale of subsidised goods

Thiruvananthapuram: Supplyco is saving crores of rupees after it stopped selling subsidised goods. For the past five months, over 1,500 outlets of Supplyco have operated without most of the 13 subsidised items. Traders note that this absence of subsidised items has caused an uptick in the prices of grocery items in the general market.

In a financial year, Supplyco allocates more than Rs 350 crore for subsidies, with the government granting Rs 190 crore for market intervention. This government institution estimates that since many subsidised goods were not available for sale for over five months, more than Rs 100 crore could be saved in its expenditure. Previously, Supplyco met the cost of subsidies through profits from the sale of other goods and returns from its 90 medical stores and 11 petrol bunks.

No decision on the price hike
Although the Left Democratic Front (LDF) has accepted Supplyco's proposal to raise the prices of subsidised goods to address the financial crisis, the Cabinet did not discuss the expert committee's recommendation on this matter. The committee had suggested a price hike of up to 50%. The prices of the subsidised goods have remained unchanged since April 2016. The government is concerned that any increase in prices might backfire in the upcoming Lok Sabha elections.