Kerala Cabinet to Consider 63.37 Crore Compensation for Rice Mill Owners

Thiruvananthapuram: Chief Minister Pinarayi Vijayan said the Kerala government discussed issues related to paddy procurement in a meeting with rice mill owners, held ahead of the Cabinet meeting here on Wednesday.

The Cabinet will consider approving a compensation amount of 63.37 crore rupees for rice mill owners for the 2022–23 procurement year, linked to the out-turn ratio. The Chief Minister said the state has no authority to revise the Centre’s fixed out-turn ratio of 68 percent.

Owing to Kerala’s unique climatic and agricultural conditions, the state has been facing challenges in meeting the standards prescribed by the Centre. The government will therefore request the Union government to take appropriate steps to address these issues.

Vijayan noted that the High Court has clarified the state government cannot provide financial assistance if mill owners incur losses in this regard. However, from the 2025–26 procurement year onwards, the government will adopt suitable measures to offset losses arising from variations in the out-turn ratio.

The state has also sought the Centre’s approval to cover transportation charges related to paddy movement, and once sanctioned, the entire amount will be transferred to the mill owners.