Cooperative societies and cooperative stores that run Tamil Nadu’s ration shops are facing a financial squeeze, as the state government has kept subsidy payments pending to meet operating expenses, according to employee representatives.
Around 35,000 ration shops in the state are operated by cooperative institutions, distributing essentials such as rice under the Public Distribution System. To cover costs including shop rent, electricity bills and transport, the government typically provides an annual subsidy averaging Rs 350–400 crore.
However, the subsidy has not been released in full, with arrears now estimated at up to Rs 700 crore. As a result, several cooperative societies are struggling to manage routine expenditures such as staff salaries and rent.
Venkatachalapathy, general secretary of the Tamil Nadu Cooperative Stores Employees Union, said subsidies were fully paid up to 2021–22, but not thereafter. He also said funds for a scheme that delivers ration items to the homes of elderly beneficiaries have not been provided, and urged that the pending Rs 700 crore be announced and released through the cooperative department’s subsidy allocation.
