THIRUVANANTHAPURAM: The Cabinet meeting directed the Chief Secretary and the Finance Secretary to take necessary steps to settle the price of paddy procured from the farmers. The Cabinet meeting held on 27th of last month had decided to take a loan of Rs 400 crore from the bank consortium to pay the procurement price of rice. A sub-committee comprising ministers KN Balagopal, GR Anil, P Prasad, VN Vasavan and K Krishnankutty has also been formed for this purpose. Additional Chief Secretary Bishwanath Sinha was tasked to negotiate with the banks. However, there was no significant improvement even after one week. Meanwhile, the negotiations with Supplyco and the banks also failed.

The discussion came to a halt when the bank representatives said that they cannot pay more amount without the government guaranteeing the repayments including Rs 3,400 crore taken earlier to pay the price of paddy. 3,400 crore is yet to be repaid. In the first phase, Supplyco had taken a loan of Rs 700 crore from the Bank Consortium to pay the price of paddy stocked in the second crop, which is being disbursed now. This amount is only sufficient to pay the farmers who have payment orders till May 15. 400 crore is urgently needed to pay the payment orders from May 16 till now. Farmers and organizations have announced a strike to get the price of paddy. The non-receipt of the amount of the last second crop harvest, while the first crop work has started, is creating a severe crisis in the agricultural sector. Palakkad district has the highest amount to be paid - 288.56 crore rupees. Minister GR Anil said that the problem will be solved soon and the dues of the farmers will be fully distributed.