Govt allocates Rs 50 crore to SupplyCo for paddy procurement

THIRUVANANTHAPURAM: The government has sanctioned an amount of Rs 50 crore to state civil supplies corporation for paddy procurement. This was informed by Finance Minister K N Balagopal. The state government has sanctioned the amount to ensure that the present season's paddy price is distributed to the farmers while there exists an arrears of Rs 207 crore in the central government's allocation for paddy procurement.

The practice in Kerala is to pay the price to the farmers when the paddy is procured without waiting for the allocation of the central government. Kerala secures state subsidy and provides the highest amount for paddy. In other states, the farmer gets the price of paddy only when the central government gives a support price. However, in Kerala, under the PRS loan scheme, the farmer will get the price of paddy from the bank.

The state government will carry out the repayment of the loan along with interest and principal. The liability of production bonus and loan interest paid by the farmer is settled by the state government. This ensures that the farmer gets the price as soon as the paddy is procured. There is no obligation to take the liability of the loan. Only in Kerala, such a scheme exists for paddy farmers. Out of the total cost of 1512.9 crores of paddy procured, Supplyco has already distributed 879.95 crores.