"Activities in ration shops have come to a standstill even as prices of essential items are skyrocketing in the open market," he said in a statement here.
Chandy said the situation is "very critical" as the rationing system in Kerala has been crippled in the last six months CPI(M)-led LDF government.
Both the ruling LDF and Centre were busy trading charges against each other over the situation in the name of implementation of the National Food Security Act, which came into force in the state from November 1, he said.
As per the new Food act, 1.54 crore people in the priority list are eligible for four kg of rice and 2 kg of wheat per month at free of cost, he said.
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The Congress leader said that as per Kerala government's decision, nearly 1.24 crore people in the APL subsidy category (previously Below Poverty Line category) have to get two kg of rice at Rs 2 per kg per month.
For 65 lakh people in the Above Poverty Line category, one family has to get 1 kg of rice at Rs 8.90 and 1 kg of wheat at Rs 6.70 per kg.
He said that the supply special rice and wheat which used to be given for Christmas will be hit.
"This is for the first time that the ration system is in dire straits in Kerala," he said.
Chandy demanded that the state take necessary steps to resolve the problem faced in the sector by giving priority to food issues of the common man.