Kerala to Roll Out Two-Tier Paddy Procurement Model Through Agricultural Cooperative Societies

Thiruvananthapuram: The state government has decided to implement a two-tier paddy procurement model using Primary Agricultural Cooperative Societies, as a cooperative- and farmer-centric alternative to the existing system. The decision was taken at a high-level meeting chaired by Chief Minister Pinarayi Vijayan, who directed the Chief Secretary and concerned department secretaries to oversee its implementation. The government plans to roll out the new system from the coming procurement season itself.

Primary Agricultural Cooperative Societies that are ready for procurement will directly purchase paddy from farmers. Instead of relying on PRS-based loans, farmers will be paid the paddy price immediately after procurement, without delay. At the district or taluk level, nodal cooperative societies will be formed with shareholding participation from cooperative societies, padasekhara committees, and farmers.

Paddy will be procured locally through cooperative societies. Processing will be carried out at mills owned by nodal societies, leased mills, or private mills. Paddy will be milled according to the prescribed out-turn ratio and supplied to the Public Distribution System (PDS). By-products such as broken rice, husk, and bran, along with processing charges currently received by private mills, will now accrue to the nodal societies. Supplyco will function as the nodal agency for paddy procurement.

For cooperative societies unable to enter procurement due to insufficient surplus funds, a special financial assistance loan scheme will be formulated through Kerala Bank. Working capital loans required by nodal cooperative societies will also be provided through Kerala Bank.

To ensure smooth implementation, a district-level coordination committee chaired by the District Collector will be constituted, comprising representatives from the Cooperation Department, Food and Civil Supplies Department, Agriculture Department, padasekhara committees, paddy farmers, Kerala Bank, and nodal cooperative societies. A digital portal system will be introduced to monitor paddy procurement and fund disbursement.

Under the new system, farmers will receive payment at the time of procurement itself, ensuring that delays are eliminated and post-harvest losses are prevented. Over time, the model is expected to ensure price stability and value addition through cooperative branding, create agricultural infrastructure for procurement, and even open up the possibility of launching Kerala’s own rice brand, ‘Kerala Rice’.

The meeting was attended by Ministers K. N. Balagopal, V. N. Vasavan, G. R. Anil, P. Prasad, K. Krishnankutty, and M. B. Rajesh, along with Chief Secretary Dr. A. Jayathilak, department secretaries, and the Chief Minister’s Chief Principal Secretary Dr. K. M. Abraham.