Thiruvananthapuram: Minister G R Anil on Tuesday said the Food and Civil Supplies Department is going through a major financial crisis in the state. He also said the price of rice may go up due to the crisis. The minister had expressed his displeasure over the inadequate allocation for the department in the budget.

Talking to media in Delhi, he said: "The state's food sector is going through a major financial crisis. The present situation should be considered in the budget allocated to the department. As minister, I will take this up for discussion in the front and the Cabinet. Discussions will also be held with the Finance Minister to resolve the issue. At present, there is a possibility the price of rice may go up in the state. The lack of government agencies in the Open Market Sale Scheme this time is what will cause the crisis. The Centre will be asked to reverse the decision. I have no further comments to make publicly on the matter," said Anil.

The minister on Monday walked out of the Assembly without shaking hands with the Finance Minister after his Budget speech to express his protest over not even allowing adequate funds for market intervention in Supplyco. As per reports, ministers G R Anil and K Rajan have expressed their protest regarding the budget to the chief minister.

Supplyco is in dire straits with a severe financial burden of Rs 2,011.52 crore due to providing subsidised goods and arrears to suppliers of Rs 792.2 crore. Several items are out of stock at Supplyco stores due to the withdrawal of suppliers.