Thiruvananthapuram, Aug 19 (UNI) Kerala Food and Civil Supplies Minister G.R. Anil has said the State has not received the Centre’s share of the procurement price for paddy purchased from farmers since 2017-18, placing a heavy financial burden on the exchequer.
He said the entire payment for paddy procurement was being borne by the State government and demanded that the Centre release its pending dues in full before Onam.
From 2017-18 onwards, an amount of ₹1,259 crore remains unpaid, while for the 2024-25 procurement year, the Centre is liable to pay ₹1,342 crore towards the Minimum Support Price (MSP). In total, ₹2,601 crore is due from the Centre, he said.
Anil explained that earlier, claims were submitted once every three months and advance payments were allowed. From 2025-26, however, this advance provision has been scrapped, and the Centre has directed states to submit claims on a monthly basis. Kerala has already submitted claims worth ₹159 crore for April–May 2025.
Pointing out that procurement in Kerala is part of the Centre’s Decentralized Grain Procurement Scheme, the Minister noted that while MSP is fixed and paid by the Centre, the State provides an additional incentive bonus. With both combined, farmers in Kerala receive the highest price in the country for paddy, he said.
In the first crop season of 2024-25, Kerala procured 1.45 lakh metric tonnes of paddy from 57,529 farmers and disbursed ₹412.4 crore. During the second season, which concluded in July, 4.35 lakh metric tonnes were procured from 1,49,615 farmers, with ₹873 crore already paid out of the payable ₹1,232 crore. Altogether, out of the ₹1,645 crore to be disbursed this year, ₹1,285 crore has been settled, and the remaining ₹359.36 crore will be cleared before Onam, the Minister assured.
For 2024-25, ₹577.5 crore was earmarked in the State budget for the incentive bonus, while ₹606 crore was allocated for 2025-26. However, these amounts had to be fully diverted to procurement payments due to the non-receipt of the Centre’s share, he said.
Anil also criticised the quality norms set by the Centre, including those related to Out Turn Ratio (OTR), as being unsuitable for Kerala’s climatic and geographical conditions. This creates problems, especially for farmers in Kuttanad, in meeting the Food Corporation of India’s Fair Average Quality (FAQ) standards. The State government, however, has been intervening to address such issues, he added.
