Kerala government, rice mill owners reach agreement on paddy procurement

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The State authorities and atom mill owners reached an statement to guarantee the creaseless procurement and retention of paddy astatine a gathering chaired by Chief Minister Pinarayi Vijayan present connected Wednesday.

The gathering was convened to sermon the mill owners’ request for revising the out-turn ratio (OTR) of communal rice. While the Centre has fixed a OTR ratio of 68% (68kg of atom for each quintal of paddy), the mill owners person sought a revision to 64.5%, citing productivity losses caused by changing climatic conditions.

High Court ruling

Although the State authorities had earlier supported the demand, the Kerala High Court ruled that the State lacks the authorization to change the ratio acceptable by the Centre.

Nonetheless, the Chief Minister announced astatine the gathering that the Cabinet would see approving ₹63.37 crore arsenic compensation to atom mill owners for losses incurred during the 2022-23 procurement twelvemonth owed to the OTR mandated by the Centre.

Clarifying that the State does not person the authorization to change the prescribed OTR, Mr. Vijayan pointed retired that Kerala faces applicable difficulties successful adhering to specified nationalist standards owed to its unsocial climatic and cultivation conditions. Under specified circumstances, the State authorities would entreaty to the Centre to revise the ratio to amended bespeak section realities.

The Chief Minister besides said that from the 2025-26 harvest play onward, the State authorities would compensate mill owners for losses arising from variations successful OTR.

Transportation charge

In addition, the State has requested the Centre to authorisation proscription charges for paddy movement. Once approved, the full magnitude volition beryllium passed connected to the mill owners, helium said.

Food and Civil Supplies Minister G.R. Anil, Finance Minister K.N. Balagopal, Cooperation Minister V.N. Vasavan, Electricity Minister K. Krishnankutty, Agriculture Minister P. Prasad, and elder bureaucrats were contiguous astatine the meeting.

Published - October 29, 2025 03:59 p.m. IST

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