CM directs to avail Rs 1600 cr credit for paddy procurement from Kerala Bank

Pinarayi Vijayan | Photo: PTI

Thiruvananthapuram: Chief Minister Pinarayi Vijayan directed to avail loans from Kerala Bank to dispense the payments of paddy procurement to farmers. The Chief Minister intervened as the arrears of Supplyco under paddy procurement were not settled.

During a meeting with bank authorities, the Chief Minister demanded Kerala Bank to provide credit. The meeting was attended by Minister GR Anil on Thursday.

Arrears worth Rs 750 crore is pending for Supplyco in Kerala Bank. In addition to this, the corporation requires Rs 1600 crore for procuring paddy in the next season. The government had earlier planned to allow Supplyco avail loans from the consortium of commercial banks. The consortium had assured loans at an interest rate of 6.9 per cent to Supplyco.

Meanwhile, Kerala Bank demanded an interest rate of 7.65 per cent under the guarantee of the government.

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