Kerala government sanctions ₹100 crore for paddy procurement-OxBig News Network

Kerala’s Finance department has authorised the release of ₹100 crore towards the subsidy for the procurement of paddy from farmers, Finance Minister K.N. Balagopal has said.

The money has been sanctioned to Kerala State Civil Supplies Corporation (Supplyco), which is in charge of the procurement. The ₹100 crore is meant for the subsidy for the paddy procurement in March and April this year (2025).

The government had sanctioned ₹185 crore earlier this year for paddy procurement up to February. The State Budget for the 2025-26 fiscal has earmarked ₹606 crore for the purpose.

Mr. Balagopal said the State government is ensuring prompt payment of subsidy even though the Centre has run up arrears on the minimum support price.

According to him, the Centre’s arrears on support price and transportation charges has mounted to nearly ₹1100 crore. Kerala follows a model where the farmers are promptly paid through the paddy receipt sheet (PRS) scheme, without waiting for the Centre to release the support price.