Kerala Civil Supplies dept faces over ₹3,000 crore in debt, may need long-term revival: Minister

The Civil Supplies department in Kerala, including its market intervention arm Supplyco, is staring at a collective liability exceeding ₹3,000 crore and may require a long-term revival plan to “undo the damage sustained over the past decade”, Minister for Food and Civil Supplies Anoop Jacob has said.

Addressing a Meet the Press organised by the Ernakulam Press Club in Kochi on Thursday, Mr. Jacob attributed the mounting liability to the previous LDF government’s decision not to revise the price of 13 subsidised items during its 10-year tenure beginning in 2016. This, he said, saddled Supplyco with a massive liability that the government failed to alleviate. The adverse impact of that policy began to surface in 2022–23, severely restricting Supplyco’s market intervention capacity.

“A proper market strategy is essential for Supplyco’s revival. Accordingly, Supplyco has been asked to prepare a plan to broaden and ensure sustainable income through diversification and effective utilisation of its extensive network of outlets. A pilot project to develop prominent stores in every district as signature marts is being planned. Round-the-clock convenience stores catering to new-age market requirements are also on the anvil,” Mr. Jacob said.

Trade fairs for Onam

Comprehensive trade fairs — not limited to subsidised items but also including fast-moving consumer goods — will be organised in Thiruvananthapuram, Kochi, and Kozhikode during the Onam season, at least 20 days ahead of the festival. District-level and Assembly constituency-level fairs will also be held. Market intervention during the festive season is the government’s immediate priority, the Minister added.

“Quarterly quality assessment reviews will be conducted to ensure the quality of materials supplied through Supplyco. A report will be compiled on political appointments in Supplyco outlets and the overall staff strength. Salaries to temporary staff have imposed a heavy financial burden on Supplyco. Excess staff from outlets with marginal sales will be redeployed,” Mr. Jacob said.

He clarified that Supplyco medical stores will not be shut; instead, new ones are planned.

A drive will be undertaken to provide priority ration cards to all eligible beneficiaries. Doorstep delivery of essential products, particularly for those unable to visit ration shops, is also part of the action plan. Discussions will be held with mill owners, paddy farmers, and other stakeholders to resolve issues related to paddy procurement, while prioritising farmers’ interests. Payments to farmers have been prioritised through loan enhancement by a consortium of banks to Supplyco.

“Hotels will be required to display the prices of products being served. Necessary interventions, including the grading system for hotels left incomplete by the previous government, will be implemented to check fleecing of customers under the pretext of commercial gas price hikes,” Mr. Jacob said.