State government sanctions ₹352.50 crore more for paddy procurement

The Finance Department has sanctioned ₹352.50 crore to the Kerala State Civil Supplies Corporation (Supplyco) towards subsidy for paddy procurement.

With this, the State government has sanctioned the ₹ 577.50 crore earmarked in the current year’s Budget for paddy procurement, Finance Minister K.M. Balagopal said. The government had sanctioned ₹225 crore in two instalments earlier this year.

Mr. Balagopal said the Centre was yet to release the arrears on paddy support price and financial assistance for the transportation cost to the tune of ₹835 crore.

Kerala follows a system where the farmer is paid by the banks under the paddy receipt sheet (PRS) system and the repayment of principal amount and interest is made by the government. This is meant to ensure prompt payment to paddy farmers.