Uncertain future for paddy harvest in Kerala: Procurement delays amidst milling disputes

Alathur: Although the first paddy harvest is underway, procurement will not begin until October as preparations remain incomplete. Farmer registration is still in progress, and the procurement price has yet to be finalised.

Registration of private mills interested in purchasing paddy has begun. Supplyco has also moved to blacklist mills that previously procured paddy but failed to deliver the required share of rice. Mill owners argue that the stored paddy was of poor quality, making it impossible to meet delivery obligations. Discussions between mill owners and Supplyco are expected soon.

Mill owners are demanding that the out-turn ratio of paddy to rice be reduced from the central standard of 68 kg per quintal to 64.5 kg per quintal in Kerala, that handling charges be raised from ₹202 to ₹272 per quintal, and that GST on handling be withdrawn.

While there is unanimous agreement on the demands of mill owners, cooperative procurement remains undecided. Both central and state cooperative societies have expressed interest, but no final decision has been made.

No decision on Cooperative procurement

The National Cooperative Consumers Federation, under the central government, has announced that procurement will begin in Palakkad and Thrissur during the first harvest. It has proposed purchasing 50,000 tonnes of paddy at the current rate of ₹28.20 per kilogram. An additional 69 paise per kilogram was promised to about 500 farmers, but it remains unclear if this will be paid.

Talks with Union ministers, National Cooperative Council, and state BJP leaders led to a preliminary agreement at the Centre. The state government had earlier decided to entrust procurement to the cooperative sector under state administration, but the move has not yet been finalised.