India

Kerala Government Plans Processing Centres to Aid Paddy Farmers

In a bid to support paddy farmers and prevent exploitation by private millers, the Kerala government is considering the establishment of modernized procurement and processing centres under Supplyco. Food and Civil Supplies Minister Anoop Jacob announced this initiative in response to concerns regarding unfair practices by millers, including excessive weight deductions. The government has previously disbursed substantial loans to farmers and is now aiming to create a more equitable procurement system, addressing the issues faced by farmers during the procurement process.

MBN India Reporter

MBN India Reporter

Jun 24, 2026

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Kerala Government Plans Processing Centres to Aid Paddy Farmers

Key Takeaways

  • Kerala plans centres to aid paddy procurement
  • Minister addresses exploitation by private millers
  • Increased loan limits aim to support farmers

This Kerala paddy farmer issue is honestly frustrating because it is not just about procurement,it is about farmers getting squeezed from every side . Government is now looking at modernized,centralized procurement and processing centres under Supplyco initiative,and on paper at least,it sounds like attempt to cut out some unfair middle layer.

Food and Civil Supplies Minister Anoop Jacob said this move is meant to reduce farmers' dependence on private millers . And that part matters because private mills have been accused of doing excessive weight deductions during procurement,which is not small thing ah when farmer is already struggling with cost and delays.

During recent session in State Legislative Assembly,Jacob responded to concerns raised by various legislators about these private mills . Main allegation is that some mills deduct up to 15 kg per quintal by calling it weather-related damage . Imagine bringing produce after all that work and then seeing such deduction at procurement stage only .

And tbh,this is where whole system starts looking unfair . Central government requirement is 68% outturn ratio (OTR),but these deductions reportedly violate that and push extra financial burden on farmers . Government has now started inspections of non-compliant mills.

Few things standing out clearly here:

  • UDF government has allocated nearly ₹217 crore to farmers via Paddy Receipt Sheet (PRS) loans through Supplyco.
  • Previous LDF government pilot scheme faced delays,especially in Palakkad.
  • Loan limit has been raised from ₹1,200 crore to ₹1,600 crore to ease financial bottlenecks.

Jacob also spoke about pilot scheme started by previous Left Democratic Front (LDF) government,where Primary Agricultural Cooperative Societies (PACS) were given role in distributing PRS loans . But that plan seems to have gone badly because it was implemented after procurement season had already started .

In Palakkad,this delay reportedly created serious procurement issues . Out of 74 cooperative societies that signed up,only 31 banks had funds needed to release payments . For farmers waiting for money after harvest,this kind of delay can disturb entire household planning .

Now UDF government has gone back to more traditional procurement process through SBI-Canara Bank consortium . PACS has been kept out of current procurement system,and government says this should make payments smoother and faster .

But bigger money problem is still sitting there . Jacob mentioned outstanding dues from previous administration amounting to ₹702 crore,and pending ₹320 crore allocation from Central government,which has been delayed because audited accounts were not submitted properly .

And honestly,farmer hears all this — Supplyco,PRS loans,PACS,SBI-Canara Bank consortium,audited accounts — but what he finally wants is simple payment without unfair cuts and endless waiting . Whether this new setup actually changes ground reality or becomes one more file-moving exercise… that question is still hanging.

Source: thehindu-top
#Kerala government#Anoop Jacob#Supplyco#paddy farmers#agricultural policy#paddy procurement#cooperative societies#UDF#LDF#financial support

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