Kerala govt plans scheme with Kerala Bank for timely paddy procurement payments

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Replying to a submission connected  the difficulties faced by paddy farmers owed  to the hold  successful  the government’s outgo   of procurement price, Minister G.R. Anil says the enactment    terms  for paddy is fixed by the Centre and past    disbursed to States, which often   takes anyplace  from 8  months to a year.

Replying to a submission connected the difficulties faced by paddy farmers owed to the hold successful the government’s outgo of procurement price, Minister G.R. Anil says the enactment terms for paddy is fixed by the Centre and past disbursed to States, which often takes anyplace from 8 months to a year. | Photo Credit: K K Mustafah

The Kerala authorities is readying to formulate a strategy successful relation with Kerala Bank from the adjacent procurement twelvemonth for the punctual outgo of procurement terms to farmers arsenic soon arsenic paddy is collected.

This was decided astatine a gathering called by the Chief Minister, on with the Food, Agriculture, Power and Cooperation Ministers, present connected September 16, Minister for Food and Civil Supplies G.R. Anil said successful the Kerala Assembly connected Monday (September 29, 2025).

Replying to a submission by C.C. Mukundan connected the difficulties faced by paddy farmers due to the fact that of the “inordinate delay” successful the government’s outgo of procurement price, Mr. Anil said the enactment terms for paddy is fixed by the Centre and past disbursed to States, which often takes anyplace from 8 months to a year. The authorities adds its stock of inducement bonus for farmers to this amount, which is past disbursed to farmers arsenic procurement price.

The Centre owes the State ₹1,206 cr, arsenic its stock of the enactment terms from 2017-18 to 2024-25, which is to beryllium distributed to farmers, helium said.

He said determination is simply a monolithic misinformation run that the Centre has not released this magnitude due to the fact that of the State’s inability to furnish the audited accounts of the nodal bureau for procurement, the Supplyco.

However, the audited statements of lone astir 2% of the full wealth owed by the Centre to the State is pending astatine present, and the State is successful the process of expediting the audit submission.

In the 2024-25 procurement year, the State authorities procured 5.80 lakh metric tonnes of paddy from 2,07,143 farmers astatine ₹1,645 cr. Of this, ₹1,574.5 cr has already been paid to 1,96,913 farmers.

What is remaining is the outgo of ₹70.5 crore to 10,230 farmers and the authorities has already initiated the process.

Mr. Anil said the authorities could disburse the procurement terms lone due to the fact that of the allocation that the Finance Minister had made up towards inducement bonus for the twelvemonth 2025-26 successful the State Budget and that the Centre had not contributed adjacent a rupee to this.

Published - September 29, 2025 04:15 p.m. IST

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