Kerala Bank slams Supplyco for unsettled paddy procurement arrears

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Thiruvananthapuram: Kerala Bank slammed Kerala State Civil Supplies Corporation (Supplyco) for the failure in dispensing payments to the farmers for paddy procurement in the state. Kerala Bank president Gopi Kottamurikkal alleged Supplyco of severe lapses in handing over the list of farmers and the repayment of loans.

Kerala Bank has granted Rs 200 crore for the Supplyco when the credits availed via the consortium of banks turned insufficient to make payments to farmers. Though Rs 5.53 crore has been pending under this category, the Supplyco has not handed over the details of farmers to the bank for distributing the arrears. Recently, Supplyco has informed Kerala Bank that it would directly give away the dues after May 25. Supplyco will have to repay the loan which has been granted via the corporate guarantee mechanism of the corporation.

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The district cooperative banks and Kerala Bank, which was established later, had successfully implemented the paddy procurement receipt scheme since 2010. The payments for the paddy procured by the Supplyco were transferred to the bank accounts of the farmers without failure. However, Supplyco formed a consortium of public sector banks to give away the payments for paddy cultivators by avoiding the Kerala Bank.

The decision to approach the Kerala Bank again was resorted as the amount granted by the consortium turned inadequate to settle the payments. The bank has already been under stress due to the non performing asset worth Rs 199.66 which was earlier approved for the Supplyco.

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