Kerala to Crack Down on Private Mills Delaying Paddy Procurement Process

Replying to a question by MLA A D Thomas in the Assembly, the minister said the government would explore the possibility of operating rice mills under the leadership of Supplyco to reduce dependence on private players in the paddy procurement process.

"If mills could be brought under a Supplyco-centred system, it would be beneficial. The government will examine the circumstances and feasibility of such a move and take appropriate action," he said.

Jacob said the absence of adequate storage facilities was creating major difficulties for farmers during paddy procurement. The government would examine the possibility of establishing godowns as an intermediary storage mechanism to address the issue, he added.

The minister also said the government had no plans to alter the existing Paddy Receipt Sheet (PRS) loan system, but would introduce measures to improve its efficiency and accuracy.

Under the PRS system, loans provided through Kerala Bank and other banks in a consortium function as advance payments to farmers, with the state government bearing the liability for repayment of the principal and interest.

To streamline the process, the government plans to implement web-service integration between the Supplyco portal and the bank consortium so that payment-related information is made available in a timely manner.

Technical issues arising from delays by banks in updating payment details have led to complaints from farmers that their credit scores were being adversely affected, the minister said.

"The objective is to introduce technological changes in the portal to ensure that such issues do not recur in the coming years," he added.

Jacob said steps would be strengthened to ensure that procurement payments are credited directly to farmers' bank accounts without delay.

He also said that Rs 702 crore in paddy procurement dues remained to be disbursed to farmers when the previous government demitted office.

The minister assured the House that the government would expedite the clearance of pending procurement payments and ensure the swift transfer of procurement prices to farmers' accounts.

Kerala's paddy procurement system largely relies on private rice mills for processing paddy procured through Supplyco (Kerala state Civil Supplies Corporation). Farmers' organisations have repeatedly raised concerns over delays in milling, storage bottlenecks and payment-related issues, prompting demands for greater state intervention in the procurement chain.