Wed Mar 12 16:10:26 UTC 2025: **Tamil Nadu Government Subsidizes Food Items Despite Rising Costs**
Chennai, March 12, 2025 – The Tamil Nadu government is continuing its subsidized food distribution program, despite escalating costs. The program provides “tur dhal” (pigeon pea lentils) and palmolein oil to ration cardholders at heavily discounted prices. The government’s annual subsidy for these items totals a substantial ₹10,500 crore, with ₹1,900 crore allocated to “tur dhal” and ₹2,865 crore to palmolein oil.
The subsidy per kilogram of “tur dhal” is ₹79.15, and ₹118.91 per litre of palmolein oil, even after cardholders pay ₹30 and ₹25 respectively. These selling prices have remained unchanged for over 15 years. The government’s procurement costs, however, are significantly higher, as evidenced by a recent receipt showing procurement prices of ₹109.15 for “tur dhal” and ₹143.91 for palmolein oil.
The Tamil Nadu Civil Supplies Corporation procures approximately 20,000 tonnes of “tur dhal” and 2 crore litres of palmolein oil monthly. A comparison with national retail prices reveals a sharp increase in palm oil prices; the average retail price in southern states has risen from ₹95.42 a year ago to ₹144.19.
Sources indicate that despite these increased costs and the considerable financial burden, the ruling DMK party has decided against raising prices or altering the program before the upcoming state assembly elections next year. The sensitivity surrounding the public distribution system and the impending election seem to be the primary reasons behind this decision.
First Piper 