Keralam sanctions Rs 150 crore to clear pending paddy procurement dues

Keralam [India], August 14 : The Keralam government has sanctioned Rs 150 crore to clear pending dues owed to farmers under the Paddy Receipt Sheet (PRS) system, Keralam CM V D Satheesan said on Thursday.
In a social media post, Satheesan said the move comes ahead of Independence Day and reaffirmed the state government's commitment to supporting farmers. He said payments for all PRS issued up to July 31, 2026, for the 2025-26 paddy procurement season would be made available to farmers from Thursday.
According to the announcement, the disbursement of the pending amount will resume through a consortium of banks, including the State Bank of India (SBI) and Canara Bank.
The release of Rs 150 crore is expected to provide relief to farmers who have been waiting for payments against paddy procured during the 2025-26 season. Under Keralam's paddy procurement system, farmers receive a Paddy Receipt Sheet after their produce is procured, with the PRS being used in the payment process.
Satheesan said the decision was aimed at ensuring that farmers receive the amounts due to them for paddy supplied under the procurement programme. Payments will cover PRS issued up to July 31, according to the announcement.
The move comes at a time when timely payment for procured agricultural produce remains an important concern for farmers, as delays can affect their ability to meet cultivation expenses and prepare for the next agricultural cycle.
The government's decision to resume disbursement through a consortium of banks is also expected to facilitate the processing of payments to eligible farmers. SBI and Canara Bank are among the institutions involved in the arrangement.
The Rs 150 crore sanction is specifically aimed at clearing pending PRS-related dues, with payments linked to the 2025-26 procurement season. Farmers whose PRS were issued on or before July 31 will be covered under the latest payment process, according to the statement.
The announcement was made on August 14, a day before the country celebrates its Independence Day. Highlighting the timing, Satheesan said the government was reaffirming its commitment to the farming community.
Paddy procurement is a key component of Kerala's agricultural support system, particularly for farmers who depend on government procurement mechanisms to sell their produce. Timely payments are important for ensuring financial stability among farming households and supporting continued agricultural activity.
The latest allocation is expected to help address a portion of the pending payment burden and enable farmers covered under the specified PRS period to receive their dues. The resumption of payments through the banking consortium is expected to provide financial relief to eligible farmers and support the state's ongoing paddy procurement programme.