Paddy Farmers Struggle as Payments Remain Unpaid for Six Months Under UDF Govt

Paddy farmers
Web Desk

Published on Sep 14, 2026, 02:05 PM | 4 min read

Thiruvananthapuram: Paddy farmers in several districts of Keralam are facing a severe financial crisis as payments for rice procured during the previous harvest season remain pending even six months after procurement. The crisis has particularly affected farmers in Palakkad and Kuttanad in Alappuzha.


Tens of thousands of farmers are reportedly yet to receive payment for the paddy procured from them. Farmers in Palakkad said around 10,000 people are still awaiting payment. The situation has become more difficult as the new harvesting season has begun while payments for the previous crop remain pending.


Although the government had assured farmers that the arrears would be cleared before Onam, only a small number of farmers have received their payments, they said. Farmers claimed that payments were being credited to only a handful of accounts each day and that banks were repeatedly telling them that the money would arrive either “today” or “tomorrow”.


Farmers have attributed the delay to government mismanagement and alleged negligence by the Finance and Agriculture departments.


The situation had changed after the UDF came to power, despite its strong criticism of the LDF government over farmers' issues while it was in the Opposition.


One of the reasons for the crisis is reportedly the stoppage of payments by banks after the repayment of loans was not made even after Supplyco's sanctioned borrowing limit was exhausted. Farmers also said disputes with mill owners over deductions related to paddy procurement and delays in collecting paddy had further aggravated the situation.


Many farmers are struggling to find money to begin cultivation, pay agricultural workers and meet machinery expenses. Farmers said they had taken loans and even pledged jewellery to finance the first crop.


The delay in receiving paddy payments has also forced some paddy fields to remain fallow this season, farmers said. They also pointed out that the requirement for farmers above 70 to nominate another person to receive the payment was contributing to further delays.


Similar crisis in Kuttanad


Farmers in Kuttanad are also facing severe financial difficulties because payments for procured paddy remain pending. Tens of thousands of farmers are reportedly awaiting payment.


With payments for the puncha crop still pending, farmers are struggling to purchase fertilisers and pesticides and pay workers for the second crop. Many are taking loans at high interest rates or pledging jewellery to finance cultivation.


Several paddy fields and backwater farming areas in Kuttanad, where a second crop was traditionally cultivated, are now facing the prospect of being left fallow because farmers have not received the money from the previous harvest. Farmers said this could also affect a large number of workers whose livelihoods depend on agriculture-related activities, including weeding, bund cutting, harvesting and transporting paddy.


Farmers said some fields in Kainakary, Pulinkunnu, Kayalpuram, Veliyanad, Edathua, Mampuzhakkari, Muttar, Venattukad, Champakulam, Nedumudi, Mankombu and Kidangara, as well as several backwater farming areas in the Kuttanad region of the district, may have to abandon the second crop because of the delay in payments.


Farmers also alleged that the government had failed to take adequate measures to prevent the inflow of eastern floodwaters. As a result, breaches in bunds damaged crops in several paddy fields and backwater farming areas in Kuttanad.


Thus, paddy farmers across several districts of Keralam continue to struggle without receiving payment for the produce procured from them. TheUDF government's administrative failures and the alleged negligence of the Agriculture Department and the Finance Department, which comes directly under the Chief Minister, are pushing farmers deeper into debt and financial distress.


Farmers are demanding that the outstanding payments be released immediately and that financial assistance be guaranteed to enable them to begin the next cultivation season.




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