The Centre has released ₹852.29 crore to Kerala as paddy procurement dues dating back to five years.
The sanctioned amount includes ₹116 crore released to clear minimum support price dues pertaining to 2019-20 and 2020-21.
According to the office of Food and Civil Supplies Minister G.R. Anil, the Union government owed the State a further ₹756.25 crore by way of outstanding claims for paddy procured.
The Centre’s decision to release the amount comes in the wake of visits made by delegations led by Mr. Anil to the Union Minister of Consumer Affairs, Food and Public Distribution.
The disbursal has nullified allegations levelled by the United Democratic Front (UDF) and Bharatiya Janata Party (BJP) that the Centre had cleared all its dues and that the State’s inability to remunerate paddy farmers was due to its fiscal mismanagement, official sources said.
The delay in sanctioning the dues had created difficulties for the State government in availing loans from banks to remunerate paddy farmers during the previous procurement season.
