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Food and Civil Supplies Minister Anoop Jacob announced successful the State Legislative Assembly connected Monday that the authorities volition measure the feasibility of establishing its ain modernised, centralised procurement and processing centres nether Supplyco to extremity the implicit reliance connected backstage millers and shield farmers from exploitation successful paddy procurement.
Mr. Jacob was responding to concerns raised during the Question Hour implicit backstage mills allegedly forcing unfair paddy value deductions connected farmers, sometimes up to 15 kg per quintal, nether the pretext of weather-related damage, and thereby straight flouting the Central authorities request of a 68%-outturn ratio (OTR). Non-compliant backstage mills are presently being subjected to inspections, the Minister said.
He informed the House that the United Democratic Front (UDF) authorities has disbursed astir ₹217 crore to farmers via Paddy Receipt Sheet (PRS) loans done Supplyco.
‘LDF strategy backfired’
Responding to questions raised by legislators, including A.D. Thomas and V.T. Balram of the Congress, Mr. Jacob elaborate wherefore a aviator strategy introduced by the erstwhile Left Democratic Front (LDF) authorities had backfired and triggered procurement delays. The medication had past entrusted Primary Agricultural Cooperative Societies (PACS) with distributing PRS loans for the 2025-26 2nd harvest season.
However, the determination delayed paddy procurement successful Palakkad by astir 2 months since it was implemented aft the procurement play had already commenced. Out of 74 cooperative societies that signed up for the scheme, lone 31 banks with capable funds could really disburse payments.
“The task was rolled retired without ensuring the indispensable infrastructure, fiscal backing, method integration oregon operational experience. Besides, the strategy failed erstwhile the peculiar assistance expected from Kerala Bank failed to materialise,” helium said.
Back to consortium
In bid to salvage the ongoing season, the UDF authorities excluded PACS from the procurement strategy and reverted to the process involving the SBI-Canara Bank consortium. Besides, the authorities has raised the indebtedness bounds from ₹1,200 crore to ₹1,600 crore to easiness the fiscal bottleneck that has plagued the sector.
Responding to erstwhile Food and Civil Supplies Minister G.R. Anil’s question regarding outstanding dues, Mr. Jacob said the erstwhile authorities near down a liability of ₹702 crore successful unpaid dues to paddy farmers.
Moreover, the State is yet to person ₹320 crore from the Central government. He attributed this hold to a backlog successful submitting audited accounts to the Centre. Supplyco has been strictly directed to implicit and taxable each pending audits wrong the adjacent six months to assertion the Central allocation, helium added.
