Supplyco runs out of fund to pay arrears worth Rs 437 to paddy farmers 

Representational Image | Photo: ANI

Kottayam: The arrears of Supplyco which is pending and has to be paid to farmers for paddy procurement touched Rs 437 crore. The corporation could not pay the paddy price for farmers after November 29. Out of the paddy worth Rs 482 crore procured till December 17, Supplyco could pay only Rs 45 crore.

Supplyco had obtained a loan of Rs 3400 crore from the bank consortium. However, the banks recouped the credits which were granted earlier to Supplyco from the amount given by the consortium. Hence, Supplyco has run out of funds for latest procurements.

The corporation has to get Rs 460 crore from the state government and Rs 580 crore from the central government. The current stalemate could be resolved if Supplyco receives these amounts. Though the corporation requested Kerala Bank for a temporary relief, the bank demanded an interest of 7.65 per cent. Supplyco replied that it can pay only 6.9 per cent interest.

The private mill owners in the state gave nod to procure the paddy harvested recently following the interventions made by the government. The three months of contract between the mill owners and the government will end in January.

Add Comment
Related Topics

Get daily updates from

Disclaimer: Kindly avoid objectionable, derogatory, unlawful and lewd comments, while responding to reports. Such comments are punishable under cyber laws. Please keep away from personal attacks. The opinions expressed here are the personal opinions of readers and not that of Mathrubhumi.