The State Government has sanctioned ₹203.9 crore to the Kerala State Civil Supplies Corporation (Supplyco) for the procurement of paddy.
Of this, ₹195.36 crore is the State subsidy for procurement while ₹8.54 crore is meant to meet the handling charges, Finance Minister K. N. Balagopal said on February 24.
Mr. Balagopal said the State government is releasing the money as the Centre had run up arrears on the Central assistance towards the support price. A payment of ₹763 crore is pending from the Centre in this regard, Mr. Balagopal said. ₹388.81 crore is pending for 2023-24, ₹351.23 crore for 2022-23 and ₹23.11 crore for 2021-22, according to the Minister.
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The State Government had earlier released ₹380 crore in two installments to Supplyco, he said.
Kerala follows a system where farmers are paid promptly on procurement without waiting for the Central share, Mr. Balagopal said. The State subsidy guarantees farmers a higher price when compared to other States, according to him. The farmers receive the payment under the Paddy Receipt Sheet (PRS) scheme through banks. The State government makes the repayment of the principal amount and interest.
