
The Kerala government has increased the procurement price of paddy to Rs 31 per kg from Rs 30, Agriculture Minister T Siddique announced on Friday, 6 November 2026. The government has also reached agreements with 37 rice mills for paddy procurement.

Siddique said in a Facebook post that the increase aims to ensure paddy farmers receive fair compensation amid rising cultivation costs. He called it part of the government's intervention to further encourage paddy cultivation.
The minister said the government would continue measures to recognise farmers' efforts, protect paddy cultivation as the foundation of food security, and improve farmers' incomes. The UDF had promised in its manifesto ahead of the Assembly elections earlier in 2026 to increase the paddy procurement price if voted to power.
The one-rupee increase directly raises the guaranteed price for paddy farmers, but with cultivation costs still rising, the margin may remain thin. The 37 mill agreements signal the government is trying to ensure procurement infrastructure matches the new price. Left unanswered is whether the new rate will be enough to reverse any decline in paddy acreage. The next step will be monitoring how many farmers actually sell at the new price and whether the mills honour the agreements.
The UDF had promised in its manifesto ahead of the Assembly elections earlier in 2026 to increase the paddy procurement price if voted to power.
Source: onmanorama.com
This brief was synthesised by AI from the source linked above. Methodology and corrections.