Paddy procurement: State cheating farmers by reducing its share even as centre increases allocation

Thiruvananthapuram: The state government has been thwarting its share in rice procurement, reports say. In the current financial year, the central share of rice allocation was increased but there was no proportionate increase in the state’s share. Moreover, the existing state share was reduced and the procurement price kept constant. 

Since the previous financial year, paddy is being procured at a rate of Rs 28.20 per kilogram in the state. Of this, Rs 20.40 is provided by the centre and Rs 7.80 by the state. The centre has increased its share by Rs 1.43 this fiscal year making the central share Rs 21.83. However, the state’s share was reduced to Rs 6.37 and the procurement price was kept the same. The price offered to farmers could have been raised to Rs 29.63 even  if the state’s share had not been increased commensurate with the central share. 

However, neither farmers nor farmers organisations have responded in this regard. The amount of paddy stored earlier is being paid for in the PRS loans. Even as the central allocation in paddy price increased twice, Kerala reduced its share. 

In the budget ahead of the 2021 Assembly elections, Rs 116 crore had been allocated for the development of paddy cultivation. Out of this, Rs 60 crore is allocated as subsidy to paddy farmers at the rate of Rs 5500 per hectare. Apart from this, it was announced that the local governing bodies would provide additional assistance of Rs 5000- Rs 10,000 and that a royalty of Rs 2000 per hectare would be given as royalty. Although it was announced that the state would offer a subsidy of Rs 10, this never materialized into anything concrete.

Fiscal year	Procurement price (Rs)	Central share (Rs)	State share (Rs)
2015-16	21.50	14.10	7.40
2016-17	22.50	14.70	7.80
2017-18	23.30	15.50	7.80
2018-19	25.30	17.50	7.80
2019-20	26.95	18.15	8.80
2020-21	27.48	18.68	8.80
2021-22	28.00	19.40	8.60
2022-23	28.20	20.40	7.80
2023-24	28.20	21.83	6.37