Kottayam: The farmers of Kerala faces an existential crisis due to the mounting arrears linked to the state government's paddy procurement, causing distress among agricultural communities. 

A staggering sum of Rs 332.54 crores is yet to reach farmers in payments, thus putting a financial strain on the agriculture sector.

The government disbursed payments to only the Paddy Receipt Sheet (PRS; issued after procuring the rice from farmers) issued till November 28, leaving a substantial sum pending beyond that date. As a result, the farmers struggle to make ends meet and pursue their livelihoods. 

Meanwhile, the Food Department has received an assurance of Rs 170 crores from Canara Bank and SBI in addressing this shortfall. Additionally, the state government has agreed to disburse Rs 200 crores in previous dues to banks. 

Approximately Rs 2004 crores is required for paddy procurement across two seasons. With each procurement season heavily reliant on loans, the delay in disbursing funds has severely impacted farmers.

Compounding the issue is the condition imposed by banks, requiring farmers to repay previous debts before accessing new loans. This predicament has further exacerbated the financial strain on farmers, creating a cycle of debt that is difficult to break.

Districts with the most dues:

Palakkad: Rs 181.35 crores
Alappuzha: Rs 100.42 crores
Kottayam: Rs 42.42 crores
Thrissur: Rs 2.88 crores

Until December 31, approximately 11.74 crore kg of paddy have been procured from nearly 48,942 farmers.