Price rise: TN may rejig PDS of tur dal, oil

TAMIL Nadu government is considering a major overhaul of the distribution of tur dal and palmolein oil through the special PDS as the subsidy for the two products accounts for a massive ₹3,800 crore for 2024-25.

- B ANBUSELVAN

Reliable sources told TNIE that the finance department has advised the state government against continuing the supply at highly subsidised rates. These products are bought by 1.6 to 1.9 crore cardholders each month.

According to highly placed sources, the government is likely to adopt a combination of strategies, including the reduction of subsidies by increasing the sale prices, partial discontinuation of edible oil distribution and introduction of eligibility criteria. The special PDS was introduced by former chief minister M Karunanidhi on April 14, 2007, with the aim of controlling the prices of essential commodities in the open market, and is fully funded by the state government.

While officials from the Tamil Nadu Civil Supplies Corporation (TNCSC) and the Civil Supplies Commissionerate did not respond to TNIE's request for comment, a senior official said the government's subsidy for these two items has more than doubled from ₹1,800 crore spent in 2014-15.