KeraFed struggles as Kerala Govt defers payments on coconut procurement

Kozhikode: KeraFed, the cooperative of coconut farmers in the state, is struggling to disburse funds to farmers and agencies after Kerala Government defaulted in clearing the arrears. 

Though the price of coconut in the market has experienced a sharp decline recently, KeraFed still procures the produce at the fixed MSP of Rs 34. Despite assuring from the government, KeraFed is yet is receive payments worth crores.

For instance, in the past one-and-half years, the government has only disbursed Rs 3 crores to KeraFed, while the coconut procurements from farmers stood at an average of Rs 7 crore per month. As per the latest numbers, the government has Rs 20 crores in arrears to be paid to KeraFed. 

Meanwhile, KeraFed has distributed Rs 56 crores to farmers, primarily with the help of money set aside from their own funds. 

KeraFed procures products through various agencies that act in liaison with farmers in the state. They are also bound to pay 5 per cent in fees to agencies and bear the cost of transportation and other related expenses. As a result, KeraFed is now unable to disburse payments to the agencies, an estimated Rs 8 crore in arrears. 

Despite facing issues, KeraFed has managed to disburse payments to farmers without fail. However, the federation is now using its own funds for the same, despite the fear that it might affect other activities of the federation.