Kerala government has slashed the diesel subsidy provided to fishing vessels purchasing fuel through Matsyafed, the Kerala State Co-operative Federation for Fisheries Development Ltd., from Rs 1 to 50 paise per litre.
This decision follows significant financial setbacks incurred by the 13 Matsyafed pumps across the state, collectively amassing a loss of Rs 1.5 crore since the inception of the Rs 1 subsidy scheme for diesel sold through their outlets. Despite the subsidy, sales at these outlets have remained persistently low, exacerbating the financial strain on Matsyafed.
Previously, Matsyafed garnered a profit of Rs 1.75 per litre of diesel sold, after deducting handling charges amounting to Rs 2 per litre. However, the implementation of the Rs 1 subsidy drastically diminished this profit margin, leaving Matsyafed with minimal returns. In response to the dire financial predicament faced by the Cooperative, the decision to halve the subsidy to 50 paise was made.
The reduction in subsidy aims to alleviate the financial burden on Matsyafed, which has been grappling with a severe financial crisis. The move underscores the challenges posed by dwindling sales and mounting losses, necessitating strategic measures to ensure the sustainability of Matsyafed’s operations and the welfare of fisherfolk in the state.
As the fishing industry navigates through turbulent waters, stakeholders are urged to collaborate in devising viable solutions to address the underlying issues plaguing Matsyafed and to uphold the livelihoods of Kerala’s fishing community.
