PALAKKAD: The impasse over paddy procurement of the first crop of the season could end within a day or two as a temporary truce is on the anvil between Supplyco and the Kerala State Rice Mill Owners Association on the issue.
“We had held talks with Supplyco general manager Sriram Venkataraman in which it was agreed that if the High Court orders in its final ruling that the ‘out-turn’ quantity (the paddy that must be returned to the government after milling it) should be retained at 68% instead of 64%, then the government will compensate for the loss sustained by the mills,” said V R Pushpangadhan, president of the Palakkad District Rice Mill Owners Association.
Though Supplyco gave an assurance in this regard, the mill owners insisted that it be given in writing and hence the agreement is awaiting the signature of Chairman and managing director Sanjeeb Patjoshi, he added.
Since most of the demands raised by the private mill owners remained unmet, the mill owners will only be signing a three-month agreement instead of the usual one-year agreement. As per this, only the first crop of paddy harvested by the farmers will be procured by the mill owners.
The three-month agreement was suggested by the mill owners at the meeting held with the finance minister, food secretary and CMD of Supplyco on Saturday. At the meeting, the government officials stated that a solution would be found before November 15 by taking up the issue with Chief Minister Pinarayi Vijayan. At that time, a new agreement will be signed by Supplyco with the private mill owners.
It may be recalled that in the past, the out-turn quantity of paddy which was to be handed back to Supplyco by the mills after processing it was 68%. Following constant lobbying by the private mill owners, Supplyco reduced this to 64%. It is this rice which is distributed through the ration shops in Kerala.
Besides the out-turn stipulation, the mill owners’ another major demand is the payment of Rs 15 crore which was withheld by Supplyco after the paddy kept in the godowns of a few mills in Kalady was damaged in the 2018 flood. They also demand the GST for processing the paddy should not be collected from them as they are merely agents.