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Kerala renews paddy procurement deal with public sector banks, says agriculture minister

T. Siddique, Kerala's Agriculture Minister, announced renewal of a paddy procurement agreement with public sector banks at a press event held at Calicut Press Club. This move, decided in UDF government's first Cabinet meeting, seeks to streamline procurement process ahead of upcoming monsoon season.

BRIC Team
BRIC Team
Jun 6, 2026 · 1 min read · 4 views
Kerala renews paddy procurement deal with public sector banks, says agriculture minister

Key Takeaways

  • Kerala's Minister for Agriculture, T. Siddique, announced a renewed paddy procurement agreement with public sector banks after it lapsed on March 31.
  • The Kerala Civil Supplies Corporation, known as Supplyco, will manage the procurement process for farmers' harvested paddy.
  • Siddique revealed that the government has not disbursed crop loss compensation funds to farmers since 2021.
  • A sub-committee was formed to finalize the procurement agreement, including Siddique and two other ministers.
  • Efforts are underway to complete the procurement process before the monsoon season begins, with progress reported as nearing completion.

T. Siddique, Kerala's Agriculture Minister, announced renewing a paddy procurement deal with public sector banks. This continues a practice started by previous LDF government . At a ‘Meet Press’ event Saturday at Calicut Press Club,Siddique said Kerala Civil Supplies Corporation,or Supplyco,will handle procurement .

Farmers get loans from public banks for harvested paddy,with paddy receipt sheets (PRS) issued. State government repays principal and interest on these loans. But delays in repayment persist,Siddique noted .

During LDF's rule,procurement was Now UDF government returns to a system where Supplyco manages it all. This decision came after UDF's first Cabinet meeting, which formed a sub-committee. Siddique,Food and Civil Supplies Minister Anoop Jacob, and Cooperation Minister M. Liju engaged with officials and banks to renew procurement deal,which expired March 31.

They're rushing to finish procurement before monsoon hits,minister said. Process is almost done. Food and Civil Supplies department will also tackle farmers' concerns about paddy moisture content to prevent PRS delays.

Asked about crop loss compensation,Siddique admitted government hasn't paid since 2021 . He also talked about boosting female participation in agriculture. But will these plans materialize…

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