The government on Friday issued orders revising the prices of 13 essential commodities supplied through Supplyco outlets in the State.
A few days ago, the Cabinet had green-lit a proposal submitted by the Food and Civil Supplies department to revise the pricing mechanism of items sold through Supplyco. As a result, the subsidy provided for commodities was brought down to 35% of the open market rates.
In the absence of a mechanism that constantly reviewed the prices, some items were sold with subsidies as high as 70%. This has led to a huge financial liability for the State-run agency that has been finding it increasingly difficult to pay its suppliers and replenish its stock.