The Kerala Assembly witnessed a fiery exchange on Thursday as the state’s persistently high retail inflation rate — currently the nation’s highest — became the flashpoint of a fierce political debate. The Opposition United Democratic Front (UDF) vehemently criticized the ruling Left Democratic Front (LDF) government, alleging a complete failure in curbing the spiraling prices of everyday essentials.
However, G.R. Anil, the Minister for Food and Civil Supplies, dismissed these accusations as unfounded. He asserted that the prices of crucial commodities for the average citizen had not increased. Instead, Minister Anil attributed Kerala’s alarming 9.04% inflation rate in August – significantly higher than the all-India average of 2.07% – to sharp rises in specific ‘Food and Beverages’ and ‘Miscellaneous’ items like cooking oil, fats, and precious metals such as gold and silver.
He further elaborated that staple items like meat, eggs, milk, fish, and sugar had shown no price hikes. In a surprising turn, he even claimed that the cost of vegetables, pulses, and spices had actually decreased.
The Opposition, however, found these explanations unsatisfactory, arguing that Minister Anil failed to provide concrete statistics to substantiate his assertions. Following a heated two-and-a-half-hour debate, Leader of the Opposition V. D. Satheesan declared a walkout, accusing both Minister Anil and the government of deliberately obscuring the true extent of Kerala’s price inflation crisis.
The day’s proceedings began with the State government agreeing to debate an adjournment motion brought forward by Congress leader P.C. Vishnunadh. This motion specifically focused on the escalating prices of essential goods and Kerala’s unenviable position as the state grappling with the nation’s highest inflation.
Mr. Vishnunadh highlighted that Kerala has consistently held the top spot for retail inflation for the past eight consecutive months. He criticized the government for its alleged inadequacy in implementing effective market intervention strategies and diligently monitoring price trends.
“In July 2024,” Mr. Vishnunadh recalled, “Minister Anil stated, in response to a similar adjournment motion, that inflation was severe in neighboring states like Karnataka, Andhra Pradesh, and Telangana, while Kerala’s rate stood at 5.47%.” He then dramatically contrasted this with the current situation: “What is the scenario now? Karnataka, now with the second-highest rate, records only 3.8%. Official data from the Ministry of Statistics and Programme Implementation reveals that other states show rates like 1.24%, 1.77%, 0.52%, and some even a negative rate, while Kerala’s inflation has skyrocketed to a staggering 9.04%.”
Adding to his critique, Mr. Vishnunadh claimed that the government had raised the prices of 13 subsidized commodities, directly contradicting its earlier assurances that such prices would remain unchanged.
Leader of the Opposition V.D. Satheesan urged immediate action to curb the escalating price rise, emphasizing how it was severely straining household budgets. He estimated that a middle-class family’s monthly expenses in September this year would have increased by ₹10,000 to ₹15,000 compared to September 2024. “More than just rising prices, the Kerala economy and individual family budgets are being plunged into a crisis,” Satheesan warned, stressing that the overall quality and standard of living for ordinary citizens were now at risk.
Satheesan further elaborated on an emerging economic challenge for the state: the twin pressures of diminishing foreign remittances and a phenomenon he termed “reverse remittance,” referring to the outflow of funds from Kerala due to its migrant worker population. These factors, he noted, significantly impact the state’s financial stability.
Echoing these concerns, Deputy Opposition Leader P.K. Kunhalikutty called for a more pragmatic governmental approach to managing inflation. He asserted that Kerala could no longer sustain such aggressive price increases, noting that while foreign remittances previously helped the state weather economic shocks, the current international labor market made this less feasible.