The Kerala government has announced plans to overhaul the pricing system of SupplyCo, aiming to alleviate the corporation’s substantial debt burden, reportedly amounting to around Rs 3,000 crore. State Minister for Food and Civil Supplies G R Anil revealed that the Cabinet’s decision includes selling 13 subsidized items through SupplyCo at prices 35% lower than market rates. Unlike previous static pricing structures maintained for years, the new approach involves quarterly reviews to adjust rates based on market fluctuations, ensuring flexibility in response to price changes.
Anil emphasized that these adjustments are geared towards mitigating SupplyCo’s losses rather than maximizing profits. The decision to maintain static prices for subsidized items since 2016 contributed to the corporation’s financial distress, prompting the need for reform. The minister assured that the government remains committed to supporting SupplyCo’s operations, recognizing its importance in serving the common populace, and pledges to take necessary measures to strengthen and expand its reach.
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