PALAKKAD: Plunged into crisis owing to procurement delay by Supplyco, farmers in Palakkad have been forced to sell the paddy for extremely low rates to mill owners.
The farmers alleged that mounting debts and rising expenses forced them to go for the distress sale of paddy.
“Paddy procurement in Palakkad will drop at least by 35% as several farmers have been forced to sell the produce to private mills at low rates. They are doing this despite incurring a loss as they have to repay their loans,” said M S Vinunath of Varkad Padashekhara Samithi in Pudupariyaram .
Desiya Karshhaka Samajam general secretary Muthalamthode Mani said most farmers are yet to receive the procurement price of the first crop of this season in their accounts. Only a few received it during the Nava Kerala Sadas program recently, he said.
“Since the procurement price is disbursed as loans, farmers have to sign a bond with the bank. Supplyco, the nodal agency for paddy procurement, is yet to begin disbursal of Rs 28 crore, the price of the second crop of the 2022-23 season,” Mani said.
“Many, including those who moved the court against disbursal of procurement price as loans, are yet to receive the arrears. Discussions are on to settle the issues,” he said.
Farmers in eastern Palakkad, who depend on coconut cultivation for livelihood, also alleged that the delayed payment had landed them in crisis.
Kerafed used to procure raw coconuts through VFPCK in Palakkad, Malappuram, and Kozhikode for Rs 34/kg. VFPCK had 12 collection and procurement centers in Malappuram, nine in Kozhikode, and 13 in Palakkad. However, since Kerafed delayed handling charges payment, the agency stopped procuring coconuts on March 31.
Instead, NAFED has been procuring coconuts from farmers in the region for the past four months for Rs 29.32/kg.