Kerala government introduces revised pricing mechanism for SupplyCo, aiming to enhance efficiency

PTI, Feb 15, 2024, 10:20 AM IST

The Kerala government on Thursday said it has decided to make changes to the pricing mechanism of SupplyCo with regard to the subsidised items to help it reduce its losses.

The move comes at a time when the Kerala State Civil Supplies Corporation, popularly known as Supplyco, is reportedly under a debt of around Rs 3,000 crore.

The government decision was announced by state Minister for Food and Civil Supplies G R Anil who said that as part of the changes, the Cabinet on Wednesday decided to sell 13 subsidised items through government-run SupplyCo at a price which is 35 per cent lesser than market rates.

He further said that the prices, however, would not be static for two or three years as it was in the past.

”If market prices go down, the SupplyCo rates will go down. If the prices go up, then the SupplyCo rates may also have to be changed accordingly. The rates will be reviewed every three months.

”These small changes are not aimed at making profits, but to reduce the losses of SupplyCo. Along with the government’s support, it can continue to function as a centre beneficial for the common man,” the minister told reporters here.

He said that in 2016 it was decided not to change for five years the prices at which the subsidised items were sold and the rates were not changed till now.

It led to the SupplyCo being pushed into the present financial distress, he noted.

The minister said that people want SupplyCo operations to be strong and extensive and the state government will take steps to ensure that.