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The Hindu
The Hindu
National
The Hindu Bureau

Desperate farmers selling paddy for lower price as procurement appears uncertain

Paddy farmers in the State are desperately turning to private rice mills for survival as uncertainties continue about the procurement of the paddy yielded in the first crop.

The government appears to be non-committal and the farmers could read the government attitude in Minister for Fisheries and Youth Affairs Saji Cherian’s comment that nothing would affect Kerala as long as there is rice in Tamil Nadu.

Minister flayed

“It is a big insult to the farmers, especially at a time when they are reeling under pressures of climate change and financial instability. Instead of trying to help and console the farmers, the Minister is adding insult to injury,” said Muthalamthodu Mani, general secretary, Desiya Karshaka Samajam (DKS).

About 20% of the farmers have sold their paddy to private rice mills for a much lower price than what they would have got through government procurement. If the government procures the paddy, the farmers will get ₹28.20 a kg. However, because of uncertainties about procurement, hundreds of farmers sold their paddy directly to private rice mills for as low a price as ₹18 a kg.

“They have virtually no choice. The weather is not favourable for the farmers. The government does not say when and how it will procure the paddy. Banks are reluctant to offer loans for procurement, especially as there are heavy arrears from the previous seasons,” said Mr. Mani.

Dues cleared

The government has nearly cleared the dues it owed to the farmers for the second crop paddy procured more than seven months ago. According to government officials, only about ₹20 crore remains to be paid.

The government is yet to decide on how to go about procuring the first crop paddy even as a vast majority of farmers are keenly awaiting the government move. The government owes ₹540 crore to Kerala Bank and about ₹2,500 crore to a consortium of public sector banks.

Without paying the consortium, the government will not be able to go for any fresh loans for paddy procurement. Kerala Bank too is unlikely to offer any more loans without the dues being settled.

The rain that lashed widely across the State in the last few days enhanced the worries of the farmers about possible loss of harvested paddy. “While the farmers are reeling under such woes, a responsible person like Mr. Cherian says they would bring rice from Tamil Nadu. It shows the height of the government’s apathy,” said Mr. Mani.

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