Many paddy growers in Kerala find themselves in a frustrating predicament as they await payments from both the central and state governments. As of now, the state government has yet to clear the outstanding dues for paddy procured from these farmers.
According to data from Supplyco, the State Government has managed to disburse payments to 4,100 farmers, but a staggering 23,691 farmers are still waiting for their dues. The Central Government, on the other hand, owes a substantial sum of Rs 637.7 crore as arrears in paddy prices.
To alleviate the situation, the State Government secured Rs 240 crore as Paddy Receipt Sheet (PRS) loans for farmers from a consortium of banks. However, only Rs 38.74 crore has been distributed to farmers as payment for the paddy procured during the second crop season.
Payment distribution by the banks began on August 24, and at the current rate, it will take at least two more weeks to complete all payments. The government had previously promised that all payments would be made before the Onam festival.
(PR loans are funds provided to farmers based on the Paddy Receipt Sheet (PRS) issued by Supplyco, the grain procurement agency. These loans represent the support price of Rs 20.40 per kg, which the Central Government should have contributed.)
Among the consortium of banks, Canara Bank disbursed Rs 38.32 crore to over 4,000 farmers, while the State Bank of India distributed Rs 42 lakh to fewer than 100 farmers.
The delay in the release of central funds is attributed to the State’s failure to submit timely accounts detailing expenses related to paddy transportation to mills, conversion into rice by de-hulling, and distribution through ration shops. This administrative process typically takes four to six months. However, the State had already disbursed its share of Rs 7.92 per kg as an incentive bonus and handling charges to the farmers.
It is crucial to note that while the State Government covers the interest on PRS loans, any failure to meet interest and principal repayment deadlines could negatively impact the farmers’ credit scores. These loans have a term limit of one year.
In response to the ongoing issue, Sanjeev Chopra, Secretary to the Union Ministry of Food and Public Distribution, is scheduled to visit Kerala next week. He plans to engage in discussions with the State Government on various matters, including the central arrears related to paddy procurement prices. These discussions are set to take place in Thiruvananthapuram on September 5, involving Food and Civil Supplies Minister G R Anil and top State officials.
In a proactive effort to address the situation, Ajith Kumar, who serves as the Secretary to the State Department of Food and Civil Supplies, visited Delhi last week. During this visit, he engaged in discussions with Central officials and provided detailed explanations regarding the account-related issues.
Post Your Comments