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The Hindu
The Hindu
National
The Hindu Bureau

Slow disbursal of paddy procurement price worries farmers

The Kerala State Civil Supplies Corporation (Supplyco) is making slow progress on disbursing paddy procurement price to farmers even as the additional (second) crop season is nearing completion in Alappuzha.

The Supplyco has procured 35,700.090 tonnes of paddy worth over ₹100 crore from Alappuzha in the additional season. However, it has not yet distributed even half the procurement price. Though the agency issued 10,062 pay orders to the tune of ₹87.07 crore, it has so far given a list of only 5,254 farmers to Canara Bank and State Bank of India for disbursing ₹46.07 crore as procurement price as of Thursday.

Payments to farmers are made from banks under the paddy receipt sheet (PRS) loan scheme for which Supplyco stands guarantee. Earlier, the government, following the delay in the disbursal of payments in the previous season, announced that the paddy procurement price for the season would be distributed without delay. Though it was announced that the price would be released through three banks, Supplyco failed to reach an agreement with Federal Bank.

95% harvested

Farmers have undertaken paddy farming on 9,122 hectares in the additional season in the district, a significant portion of which is in Kuttanad. Sources said that about 95% of the paddy sown area had been harvested so far. Farmers say that delay in payments is forcing them to borrow money from moneylenders at exorbitant interest rates to cultivate paddy in the ‘puncha’ (first) crop season.

The government earlier fixed the procurement price of paddy at ₹28.20 per kg. This includes a minimum support price and a State incentive bonus. Besides, farmers are also entitled to another 12 paise per kg as handling charges.

Sowing for ‘puncha’ season, which witnesses the most extensive paddy acreage, is in full swing in Kuttanad and other parts of Alappuzha. Farmers are expected to undertake paddy farming on 27,000 hectares in the ‘puncha’ season in the district.

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