Kerala: Setback for common man as Supplyco hikes prices of products
In a major setback to the people, the Kerala government has decided to provide a 35 percent subsidy for products available through Supplyco stores. It was decided to reduce the 55 percent subsidy on 13 subsidized goods to 35 percent.
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FollowThiruvananthapuram: In a big blow to the common people, the state government has decided to provide a 35 percent subsidy for products available through Supplyco stores. In a high-level meeting the other day, it was decided to reduce the 55 percent subsidy on 13 subsidized goods to 35 percent. The key promise in the LDF manifesto was that there would be no price hike for the next five years.Â
Since 2016, 13 subsidized goods in Supplyco have had the same price. The government had highlighted not a single rupee price hike as a big achievement. The decision comes amid deep debt to Supplyco. It demanded to increase in the price of goods or to pay arrears.
The government constituted an expert committee led by Dr. Ravi Raman to examine the subsidising practices, and the committee's recommendations were followed in making the decision.
Only a small number of the products are being sold with more than 50% subsidy. According to the committee's opinion, the state government is suffering significant losses as a result of fixed subsidies that are not timely revised.
Earlier, the finance department proposed selling the products at 25 percent reduced prices. Ultimately, though, the cabinet meeting opted to stick with 35 percent for the time being.
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