Perumpilavu: Supplyco plans on entering into an agreement with the banks next week to pay the dues for Kerala farmers. After the recent developments, officials expressed hope that they would be able to release the pending funds to the farmers this month.  

At present, Supplyco owes over Rs 700 crore to the farmers. So far the company has procured paddy worth Rs 1,630 crore this year. However, only Rs 925 crore have been distributed among the farmers in this regard.

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The company still owes Rs 300 crore to farmers in Alappuzha, Rs 225 crore to those in Palakkad and Rs 130 crore to farmers in Thrissur.

In the previous years, Supplyco used to avail paddy receipt sheet (PRS) loans. However things did not go according to the plan this year as the company failed to pay back their earlier loans on time.

Supplyco has now entered into discussions with SBI, Canara, and Federal banks. If they enter into an agreement, the banks will disburse loans like in the previous. However the responsibility of repaying the loans and the interest rates will lie on the shoulders of the company. Supplyco will have a 6-month-window for pay back.

This year the company opted to transfer money directly into the accounts of farmers. However this led to a lot of complaints and delays. 

Currently, the farmers are awaiting their funds even after 3 months of paddy procurement. Supplyco was forced to enter into agreement with banks after several strikes and protest demonstrations by the agitated farmers across the state.