Kerala Priorities Farmers: Additional Rs. 33.89 Cr Sanctioned for Paddy Procurement

Thivananthapuram: An additional Rs. 33.89 crore has been sanctioned as a subsidy for the procurement of paddy from farmers, Finance Minister K. N. Balagopal announced. This amount has been allocated to the Kerala State Civil Supplies Corporation, which is responsible for paddy procurement in the state. Earlier this financial year, Rs. 285 crore had already been released in two separate phases. A total of Rs. 606 crore has been earmarked in the state budget for this purpose, and Rs. 318.89 crore of that has now been made available.

The announcement gains importance in the context of the union government’s continued delay in releasing its share of the Minimum Support Price (MSP) and transport subsidies, with outstanding dues amounting to nearly Rs. 1,100 crore, including arrears pending since 2017. Despite this, the Kerala government has made it a priority to ensure that farmers receive their payments promptly and in full. Unlike many other states where farmers receive payment only after the Centre disburses its support price, Kerala ensures that farmers are paid immediately at the time of procurement. The state supplements the central support price with its own subsidies, ensuring that farmers get the highest possible price for their produce.

Kerala has implemented a unique Paddy Receipt Sheet (PRS) loan scheme to facilitate timely payment. Under this system, farmers receive the value of their paddy directly from the bank as a loan. The state government later repays both the principal and the interest on this loan, removing any financial burden from the farmers. In addition, the state also bears the cost of the production bonus and interest repayment. This model ensures that farmers are not only paid without delay but also shielded from debt. Kerala remains the only state in India to implement such a comprehensive system for its rice farmers.