PALAKKAD: The state government’s decision to explore the possibility of entrusting the procurement of paddy harvested this Kharif season to primary cooperative societies will help in bringing many customers back to the co-operative banks. It will also help revive many dormant accounts in cooperative banks. At a time when the CPM is all set to undertake a door-to-door campaign to win back customers’ confidence in the sector, entrusting procurement to societies will certainly give a leg up to the strategy.
Since it was a consortium of banks consisting of SBI, Canara Bank and Federal Bank that disbursed payments to paddy farmers during last season, many had switched to these banks for transactions which could again come back to primary cooperatives with the introduction of the new procurement system.
A total of 2,76,615 farmers in the state had registered with Supplyco in 2022-23, and 2,50,373 were issued paddy receipt sheets (PRS) for the procured grain. In districts like Palakkad, the same farmers who register for the first crop will also register for the second crop. Therefore, even in such a scenario at least 1.3 lakh accounts will be opened in primary societies and a sum of around Rs 2,300 crore will be disbursed through them annually which could restore customers’ confidence in primary cooperatives, said M S Vinunath of the Vaarkad Padasekhara Samiti in Puduppariyaram panchayat.
When contacted, Cooperation Minister V N Vasavan said that the decision to explore the possibility of entrusting societies with the task of procurement was based on the request of paddy farmers. The farmers had complained that the consortium of banks was clearing only the payments of a few farmers every day. He said that the Kerala Bank has an NPA of Rs 530 crore, of which Rs 470 crore is owed by the Centre. The remaining amount will be made up of budgetary allotments so that the Kerala Bank can finance the procurement by cooperative societies.
Civil Supplies Minister G R Anil is scheduled to hold discussions with Vasavan on October 10 in this regard. Subsequently, the members of the cabinet sub-committee appointed to finalise the contours of procurement will hold discussions with the officials of Supplyco and Kerala Bank on October 11.
Meanwhile, Sources said that the procurement price this season will be the same as that of last season which is Rs 28.20 per kilogram despite the Centre raising the floor price of paddy by Rs 1.43 per kilogram this Kharif season. Supplyco will be the nodal agency and the paddy of only those who have registered with it will be procured. Rice mills will process it and give back 68% of the quantity as rice which will be distributed through ration shops.
State slowly withdrawing from procurement
The state government which is on the back foot owing to the inordinate delay in the disbursal of procurement price is gradually bringing down its share of incentives so that in the course of time the blame for delays will fall on the Centre and also it could bring about relief to its already strained financial position.
Vinunath points out that similar to Kerala, Chattisgarh also provides a subsidy. This year it has fixed the procurement price at Rs 26.40 per kilogram which includes Rs 6 per kilogram as the bonus over and above the MSP announced by the Centre. Therefore, the argument that only Kerala gives incentives is just propaganda.
Paddy procurement was started for the first time by the LDF government in 2005. It was to tackle the issue of shrinking area of cultivation, increase production and cover the high cost of production that incentives were introduced by the state government. However, now the LDF is doing gross injustice to farmers by bringing down the incentive from Rs 8.8 per kg in 2019-20 and 2020 and 21 to Rs 6.37 this season, said Muthalamthode Mani, general secretary of Desiya Karshaka Samajam.
With the Lok Sabha polls round the corner, the LDF Government is trying its best to assuage the feelings of farmers which is its solid vote bank since the land reforms were initiated in the state.
