Civil Supplies Minister P. Thilothaman said on Thursday that the government will set up rice sales counters soon at the ongoing Christmas fairs in a bid to bring down the rising prices.
The government has set apart Rs.1,171 crore for rice distribution, he said while inaugurating the district-level Supplyco Christmas fair here.
Steps were being taken to sell rice, available from the Centre, at a price lesser than the market rates in various districts. The Food Corporation of India (FCI) would provide rice, with Central support price, at Rs.21.50 a kg. The State would incur additional expenses and could sell it at Rs.23 a kg. The government was trying to procure the locally milled Kuttanad rice from the Oil Palm India’s rice mill for distribution at affordable rates.
The Minister expressed the view that the Andhra Pradesh-based rice mill lobby was trying to create artificial scarcity of rice to increase the price. Certain merchants in Kerala were colluding with the lobby. Such tactics were tried during the Onam season, but the government’s timely market intervention was able to thwart their designs.
Supplyco was providing 13 commodities, including rice, at 21 to 68 per cent subsidy. Once the rice distribution system got regularised at the public distribution system, the prices would come down. The Centre’s cut in rice allocation had put the supply at public distribution system outlets in disarray. The State’s request to restore the quota was not considered favourably by the Centre.
The Minister said the rice provided by the Centre was being collected from the FCI. It was the duty of the FCI to hand over the commodity. The State was not ready to pay undue handling charges. Loading and unloading workers were demanding Rs.1,500 to Rs.2,000 for stacking each load, which was unjustifiable.
