Kerala Farmers Get Paid Instantly for Paddy

The Kerala government has initiated a significant shift in its paddy procurement process, moving to a farmer-centric, two-tier system managed by cooperative societies. This new model, set to launch from the upcoming season, aims to expedite payments to farmers, often at the point of purchase, and prevent post-harvest crop losses. Primary Agricultural Cooperative Societies will be empowered to buy paddy directly from cultivators.

To support this initiative, nodal cooperative societies will be established at district or taluk levels, involving participation from various cooperative bodies and farmer groups. These nodal societies will manage the processing of paddy, either in their own mills or rented facilities, and ensure the supply of rice to the public distribution system. Crucially, by-products and processing charges will also accrue to these cooperatives.

The government will facilitate this transition by providing special financial assistance and working capital loans through Kerala Bank to cooperatives that may need funding. A district-level coordination committee, headed by the district collector, will oversee implementation, with a digital portal to monitor procurement and fund disbursement. The long-term vision includes cooperative branding and the launch of 'Kerala Rice'.