Paddy procurement: Supplyco must settle unpaid dues to farmers within a month, orders Kerala HC

Kochi: The Kerala High Court has issued an order stating that Supplyco must pay off the paddy procurement-related arrears due to farmers within one month. Supplyco has the liberty to ask the farmers to come to the bank and sign a receipt after which the arrears will be credited to their account. The order passed by Justice Devan Ramachandran also says that if the farmers are unwilling to do this, then Supplyco must pay the dues within one month.

The matter will be taken up again on October 31. Supplyco should submit a report detailing the steps taken until then. The order was passed based on the petition filed by Palakkad native Shivanandan and others, demanding payment for the paddy procured from them.

Supplyco informed that payment up to Rs 50,000 will be paid immediately and if more than that, 28 percent will be paid directly and the remaining amount will be paid through banks. 

The paddy was procured in the months of April and May. The petitioners had pointed out that Supplyco demanded them to approach the bank for payment and sign loan applications and security documents. Supplyco, in response, stated that this kind of method was followed as per an agreement between the bank, the government, and Supplyco. 

As per the paddy procurement scheme, the amount must be paid to farmers in full within 60 days of collection. The court observed that non-payment within this time period was not right and hence upheld that the concerns of the petitioners could not be dismissed.

However, the HC also stated that since the agreement was between the bank and the government, farmers need not be vexed as they would not be held liable to repay the amount paid by the banks upon signing of the receipt.

The court also maintained that any attempt to shift the responsibility to the shoulders of farmers is not acceptable.