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Kerala Orders Mill Inspections and Considers Supplyco Processing Centres to Fix Paddy Procurement

The move targets unfair weight deductions, slow payments, storage gaps and large unpaid dues that have hit paddy farmers

Overview

  • Kerala’s Food and Civil Supplies Minister announced Monday that state officials have begun inspections of private rice mills accused of unfair weight deductions and failing to meet the Central 68% outturn ratio.
  • The government said it will evaluate creating modernised, centralised procurement and processing centres run by Supplyco to reduce reliance on private millers and protect farmers from exploitation.
  • To unblock operations the administration has reverted PRS loan disbursement to an SBI-Canara Bank consortium and raised the loan ceiling from ₹1,200 crore to ₹1,600 crore to ease financing bottlenecks.
  • Officials plan technical fixes including web-service integration between the Supplyco portal and the bank consortium so payment updates reach banks promptly and farmers’ credit records are not harmed.
  • The minister reported outstanding liabilities of ₹702 crore owed to farmers and said ₹320 crore from the Centre is pending until Supplyco completes overdue audited accounts, which the state has ordered to be finished within six months.