Thiruvananthapuram: The state government has yielded to the Centre’s ultimatum demanding refund of the price of rice, which was allocated as relief during the Kerala floods in August 2018. 

In its ultimatum, the central government warned the state to pay Rs Rs 205.81 crore immediately, failing which the amount will be deducted from next year’s State Disaster Response Fund (SDRF). Following this, Chief Minister Pinarayi Vijayan directed the government to settle the amount immediately.

Although the Centre has been raising this demand for more than a year, the state government's attempt was to find a solution through the intervention of the Prime Minister.

According to government sources, the Centre’s move has come as a double whammy to the state, which is already struggling in financial difficulties. 

Earlier, the Centre demanding money for the helicopter sent for rescue operations during the floods, had also stoked a controversy.