Kerala govt and mill owners agree to streamline paddy procurement

The govt and mill owners reached an agreement to streamline paddy procurement at a meeting held with Chief Minister Pinarayi Vijayan. He said that the cabinet will consider granting a compensation amount of Rs 63.37 crore to paddy processing mill owners for the 2022-23 procurement year related to the out-turn ratio.
Speaking at a meeting of mill owners to discuss issues related to paddy procurement, Vijayan said that the state does not have the authority to alter the out-turn ratio of 68% set by the central govt. Given the state’s unique circumstances, there are difficulties in procuring paddy according to the standards set by the central govt.
“Therefore, the state will request the central govt to take necessary decisions to resolve these issues. However, if mill owners incur losses related to this, the state govt will not intervene to provide financial assistance, as clarified by the High Court.”
Based on this, from the 2025-26 procurement year, the govt will take appropriate measures to compensate mill owners for losses due to differences in the out-turn ratio, he added. The central govt has been requested to approve transportation charges related to paddy transport. Once approved, these will be fully provided to the mill owners, the Chief Minister added.

Ministers G R Anil, K N Balagopal, V N Vasavan, K Krishnankutty, and P Prasad attended the meeting along with senior bureaucrats.