Kerala - Thiruvananthapuram   

State to seek Central aid to check price rise

Special Correspondent

To ask Centre for a share of tax revenue it earns from State

TAKING STOCK: Food and Civil Supplies Minister C. Divakaran talks to employees at the Supplyco supermarket at Fort in Thiruvananthapuram before inaugurating a special fair at the outlet on Sunday. Photo: S. Mahinsha

Thiruvananthapuram: The State Government is planning to move the Centre, seeking financial assistance for a long- term strategy to control the prices of essential goods in the State, Minister for Food and Civil Supplies C. Divakaran said here on Monday.

Addressing a press conference after inaugurating a special fair at the Supplyco supermarket in the Fort area, he said the proposed strategy would focus on effective market intervention to hold the price line. "As a consumer State, Kerala has to bear the brunt of the price rise. We are hoping the Centre would agree to part with a share of the tax revenue it earns from the State, to subsidise the market intervention programme," he said.

The Minister said a memorandum would be submitted to the Union Government seeking financial support to maintain the network of Sabari, Maveli, Laabham and Supplyco supermarkets across the State.

Mr. Divakaran claimed that the prices of the essential commodities had come down by 10 to 40 per cent following the steps taken by the Government. "The Supplyco Super Bazaar at Thrissur has achieved a daily turnover of Rs. 4.5 lakh. The retail outlet set up by a multinational company in the neighbourhood has had little impact on our sales," he said. The Minister announced that the Government was planning to open a chain of hypermarkets in major cities to cater to the upper class segment. These outlets, he said, would be centrally air-conditioned and would have counters for clothes, jewellery and other consumer items. The foundation stone for the first hypermarket would be laid on February 22, he added.

Mr. Divakaran said Supplyco was fully geared up to meet the challenge posed by multinational monopoly retail chains.

He called upon truck operators to reduce freight charges in the wake of the reduction in price of diesel fuel.

The Minister said the special fairs would offer a two per cent reduction on the prevailing price level at Supplyco outlets. He said the Government would ensure the quality of goods sold through all the outlets under the Civil Supplies Corporation.

"We are even prepared to compensate consumers who purchase sub- standard goods from these outlets," he said.

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