Effectiveness of Market Intervention by Supplyco for Stabilizing Prices of Essential Commodities in Kerala

The Kerala State Civil Supplies Corporation (KSCSC) better known as Supplyco is an agency controlled by the government of Kerala to regulate and control the price in essential commodities. As the prominent agency of the government of Kerala, Suppplyco is expected to regulate the rise in the prices of essential commodities in the open market. This is made possible through constant market intervention. The Supplyco is purchasing essential commodities from the sources of the origin or from suppliers and sold them to the final consumers at subsidized prices fixed by the government. Since the Supplyco has a great role in stabilising the prices of essentials, it's desirable to assess the effectiveness of the market interventions of this agency in the open market. This study assesses the effectiveness of market intervention by Supplyco for stabilizing prices of essential commodities. The opinion of 289 customers and 72 officers of Supplyco is the basis of analysis. The study concluded that the extent of the market intervention of Supplyco in controlling the prices of essential commodities is good.