Kerala Cabinet Clears Rs 253 crore for Supplyco, Revamps Kuttanad Package

paddy supplyco
Web Desk

Published on Feb 11, 2026, 06:12 PM | 4 min read

Thiruvananthapuram: The Kerala State Cabinet has decided to allocate Rs 253.06 crore to cover the financial burden incurred by Supplyco between 2019–20 and 2021–22. The loss arose due to the Centre’s refusal to reduce the out-turn ratio (OTR) for paddy procured under the paddy procurement scheme from 68 per cent to 64.5 per cent.


Ahead of the 2017–18 procurement season, millers had expressed reluctance to process paddy, citing difficulties in meeting the 68 per cent OTR fixed by the Central government. In 2018, the Kerala government issued an order stating that it would bear the additional financial burden until the Centre revised the OTR to 64.5 per cent per quintal of paddy.


Kuttanad Package: Structural Reforms Approved


The Cabinet has approved amendments to the structure and functioning of the Kuttanad Development Coordination Council as part of the second phase of the Kuttanad Package.


The revised framework will include a Central Project Processing Unit – Kuttanad Regional Development (CPPU-KRD), an Information and Technical Committee, working groups, and a Kuttanad Cell.


The Chief Secretary has been appointed as Convener of the Kuttanad Development Coordination Council. A member of the State Planning Board handling agriculture, water resources, fisheries, and animal husbandry will also serve on the council. The CPPU-KRD will function under the State Planning Board and report matters related to Kuttanad Regional Development to the Planning Board Member Secretary, who is also the Special Officer for the Kuttanad Package. Experts in IT, finance, and water resources will be associated with the unit.


District-level Implementation and Technical Committees will be constituted in Alappuzha, Kottayam, and Pathanamthitta, with District Panchayat Presidents as Chairpersons and District Collectors as Conveners. District-level officers concerned will serve as members. These committees will function as sub-committees of the respective District Planning Committees (DPCs). The Joint Registrar of Cooperation, Project Coordinator, and MNREGS representatives will also be included.


Departmental project proposals will be scrutinised by the district committees and forwarded to the CPPU-KRD. Inter-district projects will be prepared in consultation with the DPCs.


Administrative approval for projects up to Rs 5 crore will be granted at the district level, in accordance with CPPU-KRD guidelines. Existing procedures will continue for the approval and implementation of local body projects.


A Kuttanad Cell will be established under the Department of Planning and Economic Affairs as the state-level secretariat of the Kuttanad Development Coordination Council, under the supervision of the Chief Secretary. Three working groups comprising relevant departments and agencies will also be formed. A revised government order reflecting these structural changes will be issued.


Empowered Committee for Hilly Development


The Cabinet has approved the formation of an Empowered Committee for Hilly Development to oversee the activities of the Hilly Development Program.


The Chief Minister will serve as Chairperson, with the Ministers for Agriculture and Forests as Vice-Chairpersons, and the Chief Secretary as Convener.


One of the committee’s key objectives is to implement a “zero-casualty” policy in addressing human-wildlife conflict through modern technology and habitat restoration. The committee will also work to transition the Western Ghats economy from a commodity-based model to a value-added approach.


Farmers affected by wildlife attacks will be provided insurance coverage. The committee will seek to resolve obstacles to infrastructure projects such as hill highways, ropeways, and airstrips, while ensuring compliance with environmental norms. It will also finalise the boundaries of environmentally sensitive areas and expedite the distribution of land titles on non-forest lands.


Efforts will be made to improve coordinated marketing of agricultural produce and spices. The Wildlife Protection Act will be implemented in a people-friendly manner. The committee will meet every three months and will deliberate on projects and proposals submitted by departments ad district collectors.


Ports to Be Developed Under PPP Model


The Cabinet has granted permission to the Kerala Maritime Board to develop Kollam and Beypore ports under a Public-Private Partnership (PPP) model.


Feasibility studies will be conducted for both ports, excluding existing facilities. Detailed Project Reports (DPRs) will be prepared, and suitable development models will be finalised for each port.


Special Courts for NDPS Cases


Approval has been granted to establish special courts for the trial of NDPS (Narcotic Drugs and Psychotropic Substances) cases in Thiruvananthapuram and Ernakulam districts. Four new posts will be created for this purpose.



deshabhimani section

Related News

View More
0 comments
Sort by

Deshabhimani
Home