THIRUVANANTHAPURAM: Supplyco and Kerala Bank have agreed to collaborate to ensure that procurement prices of paddy are available in the future without any delay. The decision was taken in a discussion held by Minister G R Anil and Kerala Bank President Gopi Kottamurikkal in the presence of the concerned officials. The Public Distribution Consumer Commissioner and Supplyco MD will hold discussions with Kerala Bank's top authorities on August 7 to take further steps and make necessary arrangements for the disbursement of storage prices for paddy.

The cabinet meeting held on the 27th of last month had decided to settle the arrears due to the farmers by securing loans. The meeting tasked the cabinet sub-committee to speed up the process. However, the loan can only be secured from Kerala Bank after one month. The amount for paddy stocked after May 15 is to be payed. Paddy has to be stocked again in September.

The first attempt was to take another loan of Rs 400 crore from a consortium of banks. When that did not materialize, Kerala Bank was approached. Earlier, it had taken a loan of Rs 900 crore from the bank consortium, Rs 200 crore from Kerala Bank, and again Rs 700 crore from the bank consortium. In addition to this, an additional 400 crores is being taken as a loan.