THIRUVANANTHAPURAM: Food and Civil Supplies Minister C. Divakaran has said that Rs.56 crore has been sanctioned to Kerala State Civil Supplies Corporation (Supplyco) as part of the market intervention programmes initiated by the State government to control the price line.
In an official statement here, Mr. Divakaran said the amount had been sanctioned as a follow-up to the decision taken at the December 8 meeting of the Cabinet sub-committee.
The amount included Rs.9 crore as subsidy for rice distribution at reduced prices, Rs.34 crore towards the State’s share for paddy procurement and Rs.13 crore towards meeting the cost of noon-meal scheme.
The Minister said Supplyco had distributed rice by providing a subsidy of Rs.4 a kg, which was made available by the Centre at a cost of Rs.17 a kg.
The Minister said the Finance Department might clear the files relating to the Rs.18-crore scheme for setting up Maveli hotels and a subsidy scheme for sugar to be sold at Rs.25 a kg. He said Supplyco would lose Rs.7 crore a month on the sugar sale at subsidised rates and the government would have to compensate the corporation.
The Minister said the price rise in Kerala was well below the national average. Mr. Divakaran attributed this to the strong action his department had taken to keep the price line down.