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GR Anil, Kerala’s Food and Civil Supplies Minister, said the state is not receiving the Union government’s share in the procurement of paddy from farmers. In a press meet on Monday, August 18, he urged the Union government to release Kerala’s pending amount of procurement price for paddy before Onam.
The minister said the state is facing severe financial struggles as the state has not received the Union government’s share in paddy procurement since the 2017-18 financial year. “The union government is denying the amount from the financial year 2017-18, citing unjustifiable reasons. They blocked Rs 1259 cr, which was supposed to be given to the farmers in Kerala,” he said.
The minister said Kerala is the state that offers the highest price for paddy to farmers in the country. “We procure paddy for Rs 28.20 per kg. This includes Rs 23 from the union government as the Minimum Support Price (MSP), and the state add bonus of Rs 5.20. But now, the union government is withholding the amount to be paid as procurement price to paddy farmers in Kerala, " he said.
The minister then said, "In the 2024-25 year, the MSP is 1342 crore, and the union government has failed to provide even Rs 1. So, adding the 2017-18 and 2024-25, a total of Rs 2601 crore was blocked by the Union government."
The minister further said, for the first crop of 2024-25, 1.45 lakh metric tonnes of paddy were procured from 57,529 farmers across Kerala, and the value of the paddy, 4.12.4 cr, was completely distributed. For the second crop, 4.34 lakh metric tonnes were procured from 149615 farmers. Out of 1232 crore as its value, 873 cr were distributed. The pending amount will be distributed before Onam.