Palakkad/Thrissur: Paddy farmers in Kerala are facing an uncertain future as Supplyco has failed to pay an outstanding amount of approximately Rs 557 crore for paddy procurement until June 6, 2023.
For the past two months, around 71,000 farmers have been waiting for the authorities to distribute the payment ahead of the new planting season.
Meanwhile, Supplyco has only managed to distribute Rs 709 crores out of Rs 1,975 crores of paddy procured by them.
Until last year, the payments were deposited in the farmer's bank account immediately after receiving approval from Supplyco. The document issued by Supplyco was enough to release the amount from the nationalized banks. Even though the farmers received the money on time, the government failed to assign funds to the banks, resulting in a crisis.
Following this, the government shifted the payment process to Kerala Bank. However, the failure on the part of the government to deposit money on time forced Kerala Bank to suspend payments.
Meanwhile, Supplyco formed a consortium of banks and signed a contract for Rs 700 crores. Currently, the money allocated by the consortium to Supplyco is redistributed to farmers.
However, the farmers are facing a crisis due to Supplyco's failure to issue payments promptly.