INSIDE KERALA ASSEMBLY

Is inflation a matter of worry in Kerala? Min, Opposition Leader battle it out

Opposition Leader VD Satheesan on Wednesday termed the sudden spike in the prices of vegetables and other food items as "a rare occurrence". Civil Supplies minister GR Anil, on the other hand, sought to give the impression that the Opposition was being over-dramatic and that it was part of a national trend.

Both were speaking during an adjournment motion moved by Congress MLA Roji M John on the massive hike in the prices of vegetables and other essential items. Roji had said that prices of commonly used vegetables like tomatoes, carrots and drumsticks and even fish and foodgrains had gone up by over 100 per cent in a month's time.

"This is not a Kerala-specific issue but a pan-India problem," Anil said. The minister even suggested the situation in the state was comparatively better. He said inflation in Kerala (5.47%) was less than the rates in neighbouring Karnataka (6.11%), other south Indian states Andhra Pradesh (5.87%) and Telangana (5.97%) or Odisha (6.25%).

He then reminded the UDF members of the remark made by former union finance minister P Chidambaram when he was once confronted with the inflation question. "I don't have a magic wand," Anil quoted Chidambaram as saying. It was not clear whether the minister was ridiculing the Congress by weaponising the words of its former minister or he was saying that he was only as helpless as Chidambaram.

Nonetheless, the minister said that two meetings - one by Agriculture Minister P Prasad and the other by Chief Secretary V Venu - were convened to tackle the price issue. The rest of Anil's speech was mostly about the efficient functioning of the Public Distribution System in Kerala.

The Opposition Leader was apparently provoked by what he called a diversionary tactic. "The notice moved by Roji was not about the operation of the PDS in Kerala. It was about the rare and sudden increase in the prices of vegetables, eggs, meat, fruits and provisions," Satheesan said. "Our question was about the steps taken to control prices. You said two meetings were convened but our question, again, is what were the steps taken," Satheesan said.

As proof that nothing was done, Satheesan referred to the condition of Horticorp, a government body formed to procure vegetables from farmers at remunerative rates and keep open market prices in check. "Prices of many items in Horticorp are higher than in the open market," Satheesan said. He also said that Horticorp had not yet paid vegetable farmers of Vattavada in Idukki.

Through Vattavada, Satheesan went straight to his argument that organisations created for market intervention like Horticorp and Supplyco were being throttled by the state government. "Open market prices could be kept in check if the Supplyco sold 13 essential commodities at subsidised rates," Satheesan said. "Truth is in 2022-23, the government has not paid even a single paise as a grant to Supplyco for the distribution of subsidised items," he said.

According to him, this has caused Supplyco a loss of Rs 586 crore that fiscal. Realising that money from the government would be hard to come by, Satheesan said Supplyco reduced its expenditure for the next fiscal, 2023-24, by Rs 862 crore. (In 2022-23, Supplyco's expenditure was Rs 1,427 crore. In 2023-24, it came down to Rs 562 crore, a reduction of Rs Rs 862 crore.)

Result: Empty racks in Supplyco outlets. He said the government had not paid over Rs 4000 crore to Supplyco. While reeling out figures that demonstrated the phased pauperisation of Supplyco, the Opposition Leader turned to the Civil Supplies minister and said: "I am speaking for you, too."  "I am not speaking against you but against the negligence of the government," he said.

The Opposition Leader, however, criticised the Civil Supplies minister for not taking inflation seriously. Anil had said that Kerala fared better relative to many neighbouring states. Satheesan said the approach was wrong. "Inflation in Kerala has traditionally remained below the national average or near it," Satheesan said. The national average now was 4.87 per cent while Kerala's inflation was 5.47 per cent. "It is near miraculous that inflation in Kerala would not go beyond a certain level though our personal capital income is low. Now it is far higher than the national average. Such a situation should not happen in Kerala," Satheesan said.

He said that along with the price rise, Kerala suffers from falling purchasing power. "With the government delaying pensions and other benefits, the purchasing power of the poorest of poor is at a record low. Rise in prices of essential commodities at this stage could exacerbate poverty," the Opposition Leader said.