Kerala Claims Centre Withheld ₹2,601 Crore MSP Dues to Paddy Farmers

Fast Summary:

• Kerala government accused the Center of withholding ₹2,601 crore in MSP dues to paddy farmers.

– ₹1,259 crore pending as 2017-18 fiscal year.
– ₹1,342 crore for paddy procured in the 2024-25 season remains unpaid.

• The MSP for paddy is currently set at ₹23/kg by the Centre; Kerala provides an additional incentive of ₹5.20/kg as a State Bonus.
• Payments under the Centre’s Decentralised Procurement scheme have faced delays despite provisions for monthly claims since fiscal year 2025-26; no payment has been released for April-May this year (₹159 crore claimed).
• Minister G.R.Anil criticized “stringent and impractical” quality norms regarding moisture content and out-turn ratio, citing challenges faced by Kerala’s farmers due to local climate conditions.
• Despite withheld funds from the Centre, Kerala disbursed ₹1,285 crore to farmers during the current procurement season:

– First crop season: ₹412.4 crore paid to 57,529 farmers.
– Second crop procurement (concluded July): ₹873 crore paid to 1,49,615 farmers; remaining ₹359.36 crore will be distributed before Onam.

Indian Opinion Analysis:

The payment delays under the MSP framework spotlight continuing rifts between States like Kerala and the Central government over fund disbursement mechanisms and policies tied to agriculture procurement. Farmers shoulder stress due to payment uncertainties compounded further by strict national quality standards that do not account for region-specific farming practices or climatic realities.

Kerala’s financial intervention via bonus payouts reflects a proactive effort but raises concerns about long-term sustainability without adequate support from Delhi.With agriculture being a critical livelihood source here-especially in ecologically sensitive zones such as Kuttanad-the issue could have broader implications for food security and farmer welfare if unresolved efficiently before festive periods like Onam.

Such disputes highlight potential systemic inefficiencies within India’s decentralized procurement model that merit review on grounds of equity across regional landscapes with varied agricultural contexts.

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