The Left Democratic Front (LDF) State Committee on November 10, 2023 gave political sanction to “minimally increase” the price of 13 essential commodities retailed at subsidised rates through State-funded Kerala State Civil Supplies Corporation (Supplyco) outlets.
LDF State Convenor E. P. Jayarajan set no deadline for the “price hike” and said the government would work out the modalities.
Food Minister G.R. Anil sought to lessen public worry over the arguably “unpopular decision” that may resonate strongly among ordinary families.
“Supplyco sold rice for ₹25 a kg and red chilly for ₹75 a kg when the market price for the basic provisions hovered at ₹45 and ₹290, respectively. Supplyco does not plan to revert to the market rate. Instead, it might increase the subsidised price by ₹2 or ₹3 a kg,” he said.
Payment backlog
Mr. Anil said the Centre and the State governments owed Supplyco a massive backlog of payments for bankrolling the administration’s market intervention schemes to control seller inflation and mitigate the cost of living crisis. It has kept the prices of subsidised commodities the same since 2016.
He said the government has no deadline for rejigging the price of essential commodities retailed through Supplyco outlets.
The LDF appeared wary that Congress and the Bharatiya Janata Party (BJP) would make a political issue out of the Supplyco “price hike” to assail the government. Both parties had accused Supplyco of failing to provide basic provisions at subsidised rates to consumers last Onam by highlighting empty shelves devoid of essentials at the outlets.
BJP State president K. Surendran warned the government that the impending Supplyco “price hike” would trigger intense street protests against the LDF government. He termed the move a stab in the dark.
Mr. Surendran said the government had arm-twisted the public to pick up the tab for the State’s revenue shortfall caused by the flawed tax administration.
The LDF increased water and power tariffs and building taxes, exacerbating the cost of living crisis. It has repeatedly attempted to lay the blame for its maladministration at the Centre’s doorstep. He claimed the Centre had channelled more funds to Kerala than any previous Union Government”.
