PALAKKAD: The Supplyco has requested the state government for a special grant of Rs 200 crore to pay the farmers whose paddy has been procured this season.The cash crunch being faced by the Supplyco has created problems for the farmers, who were hard pressed for funds to sow their second crop.It is estimated that in the three major paddy producing districts of Palakkad, Alappuzha and Kottayam, the farmers had to be paid a sum of over Rs 92 crore. The Supplyco has also exhausted its overdraft limit of Rs 450 crore from the banks.The Supplyco was procuring paddy at Rs 15 per kg, the floor price fixed by the government for this season. Of this, Rs 10.50 is paid by the Central Government and the remaining amount is borne by the state. Since the price in the open market is way low at Rs 10 and Rs 11 per kg, the farmers will prefer to give all their harvest to Supplyco. Therefore, the procurement figures will be higher this time and more funds are needed for paying the farmers, Supplyco sources said. “A sum of Rs 75 crore was set aside in the budget this year for paddy procurement in the state,” said officials of the Civil Supplies Corporation. The dues of the previous season as on June, 2011 amounted to Rs 52 crore which had to be cleared. This year for the first crop, paddy procurement dues in Palakkad district alone amounted to Rs 40 crore. Supplyco sources said the balance amount of Rs 52 crores was for the paddy procured during the LDF rule in the state. Around 90,000 tonnes of paddy has been procured in the three districts and the payment has been made only for the paddy taken till October 9. Therefore the payment for one month is still pending.The first crop procurement target set in the state was 1,25,000 tonnes. The sources in the Supplyco said a payment crisis was looming large in the state. “A sum of Rs 182 crore is expected from the Central Government for the current season, but it will take at least three to four weeks to get the amount,” said the sources.The procurement figures in the state for the first crop is in the process of beingtabulated. These figures have to be sent to the food secretary in the state and then to the Food Corporation of India (FCI). This process will also take time.Therefore, the state government needs to release funds at the earliest if a payment crisis to the farmers have to be averted, sources said.In the first crop this season, Supplyco has procured 28,000 tonnes of paddy from Chittur taluk, 24,000 tonnes from Alathur taluk, 1,600 tonnes from Palakkad taluk and 6,000 tonnes from Ottapalam taluk in Palakkad district.
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