The Kerala state government has unveiled a major overhaul of its paddy procurement system, placing farmers and cooperatives at its core. Chief Minister Pinarayi Vijayan chaired a high-level meeting and gave the final nod for a new two-tier procurement model that will be executed through primary agricultural cooperative societies.
A New Cooperative-Centric Procurement Model
The government plans to roll out this new system in the upcoming paddy season. The responsibility for implementation has been assigned to the chief secretary and other relevant department secretaries. SupplyCo will act as the nodal agency for the entire paddy procurement process under this new framework.
Under the approved model, primary agricultural cooperative societies that are ready for the task will directly collect paddy from farmers in their areas. This system is designed to replace the older paddy receipt sheet-based loan mechanism. A key promise of the new model is to ensure prompt payment to farmers immediately after procurement, addressing a long-standing grievance.
Structure, Financing, and Digital Oversight
At the district and taluk levels, the government will form a nodal cooperative society. This entity will have shareholding participation from various cooperative societies, paddy field committees, and farmers themselves. Once the paddy is collected by the local cooperatives, it will be processed in mills owned by these nodal societies, rented mills, or private mills.
The processed rice will then be delivered to the public distribution system based on a pre-decided out-turn ratio. Importantly, nodal societies will receive the by-products and processing charges that are currently given to private mills, adding to their revenue.
To support cooperatives with limited funds, the government will launch a special financial assistance loan scheme through Kerala Bank. Additionally, Kerala Bank will provide working capital loans to the nodal cooperative societies to ensure smooth operations.
Implementation and Future Vision
For effective execution, a district-level coordination committee will be formed under the leadership of the district collector. This committee will include representatives from cooperative, food and public distribution, and agriculture departments, along with paddy field committees, farmer representatives, Kerala Bank, and the nodal cooperative societies.
A digital portal system will be established to monitor every stage of paddy procurement and payment distribution in real-time. This technological intervention aims to guarantee that farmers receive their payments during the procurement period itself and prevent spoilage of produce due to administrative delays.
Looking ahead, the model aims to ensure price stability and create value addition through cooperative branding. The government also plans to develop agricultural infrastructure specifically for procurement. A significant brand initiative is part of the plan: the launch of the state's own rice brand named 'Kerala Rice'.
