THIRUVANANTHAPURAM: The cabinet sub-committee meeting convened to discuss the implementation of the first crop paddy procurement under the leadership of the cooperative department was adjourned without a decision. The meeting was held by a committee comprising ministers V N Vasavan, G R Anil and P Prasad.

The sub-committee had earlier reached an agreement in principle to procure paddy through primary cooperative societies and then to pay the price to the farmers in collaboration with Kerala Bank. However, it became clear in the discussions that the primary societies could intervene only at the point where farmers were paid after procuring paddy. Neither the Cooperative department nor the primary societies have the experience and facilities that Supplyco has in measures such as reaching an agreement with the mill owners, godowns for storage, and delivering rice to godowns and ration shops.

Kerala Bank president Gopi Kottamurikkal and officials had participated in the first phase of the talks to collect the details of the loan to be given for paddy procurement. Supplyco has taken a loan of Rs 885 crore from Kerala Bank in two phases for paddy procurement. In addition to this, loans of Rs 2,500 crore and then Rs 1,100 crore were taken from the bank consortium last year to provide paddy prices to farmers. Kerala Bank can sanction a loan for paddy procurement only after clearing the loan liability from the bank consortium. A decision should also be taken on the previous loans from Kerala Bank to Supplyco. The Kerala Bank officials, who collected such details, said they would soon give a reply.