ALAPPUZHA: The rice cultivators are in a state of panic because of the uncertainty about the payment by Supplyco for the rice procured. Their concern is aggravated by the fact that Supplyco is in a financial crisis with its treasury empty.

The government had assured that money will reach the farmer’s accounts after two weeks of the rice procurement. The Supplyco’s helplessness to pay the cultivators, who are deep in debt after the floods and the arrogant stance taken by mill owners.

Till December 17, the Supplyco had procured rice worth Rs.488 crore. However, payment for the procured rice has not been given since November 29th. Supplyco took Rs.2500 crore as loan from a bank consortium to pay for the procurement. However, the banks took most of that money to pay its previous dues. This has made Supplyco unable to pay a single penny of the procurement.

Supplyco had discussed with the Kerala Gramin Bank for a loan. But the bank asked for 7.65% as interest. Supplyco on the other hand said it can give only 6.9% as interest.