Kerala Supplyco sinks deeper in debt ahead of Onam festival; Government mismanagement draws criticism

THIRUVANANTHAPURAM: With just a month remaining for the much-awaited Onam festival, the Kerala State Civil Supplies Corporation Limited (Supplyco) finds itself grappling with mounting debts. The corporation is struggling to make payments for past purchases, attributing their financial woes to nonpayment from the state government.

As a consequence of the financial crisis, the state government has been compelled to reduce the supply of Onam kits. Suppliers have backed away due to outstanding payments, leading to numerous products going out of stock.

In response to the challenging situation, the cabinet has taken a decision to restrict the distribution of Onam kits solely to yellow card holders. Each kit is estimated to cost Rs. 450, necessitating a special allocation of funds from the state finance department.

Supplyco currently has pending dues amounting to a staggering Rs. 2000 crores from the government. Despite the food ministry’s urgent plea for the release of Rs. 1500 crores, the finance department has only allocated a meager Rs. 250 crores. Consequently, the distribution of Onam kits hinges entirely on the release of funds from the finance department.

Last year, all cardholders received a package containing 13 items valued at Rs. 500 as part of the Onam kit. However, it has been reported that a significant sum of Rs. 45 crore remains unpaid to ration dealers as a consequence of the kit distribution.

Furthermore, the food department faces difficulties in paying this amount following a Supreme Court order. Similarly, the state government owes Rs. 600 crore to various distributors, who have taken a stance of withholding food items from Supplyco until they receive the outstanding payment. This could have severe repercussions on the people of the state.

There are serious allegations against the state government regarding unnecessary expenditures, which are believed to exacerbate the existing financial crisis. The situation is precarious as the state struggles to find a way out of the mounting debt burden ahead of the festive season.