The subsidy given by the government to fishing vessels procuring diesel through Matsyafed (Kerala State Co-operative Federation for Fisheries Development Ltd.), fuel bunks in the state has been reduced from Rs 1 to 50 paise. The move came in the wake of losses incurred by the 13 Matsyafed pumps offering diesel to fisherfolks in the state. Matsyafed has suffered a loss of Rs 1.5 crore since the government announced a Rs 1 subsidy for the fuel sold through their outlets. Despite all of this, it is said that sales at these outlets continue to be low.
Earlier, Matsyafed earned Rs 1.75 in profit after excluding handling charges of Rs 2 per litre of diesel sold through the bunks. However, the decision to provide a Rs 1 subsidy reduced this profit to a meagre sum. Matsyafed officials say that the decision to reduce the subsidy to 50 paise came in the backdrop of the severe financial crisis faced by the Cooperative.
Meanwhile, Matsyafed will soon launch its 14th fuel bunk in Tanur. Officials say sales at Matsyafed pumps are declining due to consumer pumps operated by boat owners for their personal use. The illegal supply of diesel from Mangaluru and Mahe is also a contributing factor to the drop in sales.