Thiruvananthapuram: After elaborate deliberations, the Kerala Government has decided to increase the prices of 13 essential food items distributed through Supplyco outlets. The prices of these items were kept low due to the subsidies of up to 70 per cent. However, following the latest decision of the state cabinet, the maximum subsidy will be 35 per cent on market rates.

The government has also decided to change the prices depending on fluctuations in the market. This decision is observed as a departure from the policy of the first Pinarayi Vijayan ministry which had refused to increase the prices of subsidised items.

Even though the Civil Supplies Department had recommended a price hike, the Cabinet did not approve it in view of the upcoming Parliament elections. However, the nod was given after it was pointed out that Supplyco’s financial situation would worsen if the items were sold at the existing prices as the government could not infuse more funds for subsidy in view of the state’s financial crisis.

A meeting of the Left Democratic Front (LDF) gave approval to the price hike last year and an expert panel appointed by the Food and Civil Supplies Department submitted necessary recommendations in December last year. While LDF had suggested a cap of 25-per cent on subsidies, the government cleared the recommendation of the Food and Civil Supplies Department for a maximum subsidy of 35 per cent.

As per reports, Supplyco spends Rs 350 crore every year on subsidies and it has accumulated dues of around Rs 1000 crore to suppliers. Each month, nearly 40 lakh ration card holders purchase subsidized items from public distribution outlets. However, most of these ration shops have been running short of stock during the last six months.

Current price list
The prices of 13 items as per the current subsidy rate were as follows. Red chillies will witness the steepest increase as it enjoyed the largest subsidy of 70 per cent.

Green gram (one kg) – Rs 74
Black gram (one kg) – Rs 66
Black chickpeas (one kg) – Rs 43
Red gram (one kg) – Rs 45
Lentils (tur dal - one kg) – Rs 65
Red chillies (500 g) – Rs 75
Coriander (500 g) – Rs 79
Sugar (one kg) – Rs 22
Coconut oil (500 ml) – Rs 46
Jaya rice (one kg) – Rs 25
Kuruva rice (one kg) – Rs 25
Matta rice (one kg) – Rs 24
Raw rice (one rice) – Rs 23

The civil supplies department has also decided to cut the supply of rice to the customers. As per the new decision, one customer can purchase a maximum of 10 kg of rice from all varieties.