Paddy farmers in the district have expressed concern over the government’s decision to channel paddy rice purchase through cooperative societies rather than Supplyco for the upcoming second crop season.
They argue that cooperative societies lack both the expertise to effectively manage large orders and the ability to pay farmers within two days of collection.
When procurement started in Kerala in 2003, cooperative societies were responsible for the process. However, after the procurement of the three crops, the five cooperative banks approached the High Court in a bid to end the awarding of public contracts through the companies. The appeal was led by K. Krishnankutty, then president of Perumatty Service Cooperative Bank and now Minister for Power.
Supplyco took over the purchase of the paddy fields in 2005 and has been managing the entire process since then. “The government is now trying to revive a failed experiment by entrusting cooperative societies with purchasing paddy fields,” said Pandiyodu Prabhakaran, general secretary of the Desiya Karshaka Samrakshana Samiti (DKSS).
“Trying to repeat a failed experiment twice is unwise. Co-operative societies lack the necessary procurement facilities and may end up relying on private rice millers, which could lead to corruption and complications,” warned Mr. Prabhakaran. He added that the involvement of cooperative societies would actually amount to cheating the farmers.
Harvesting of the second paddy crop is about to begin in the western areas of Palakkad district, where irrigation does not rely on water from the dam. In eastern areas that depend on dam water for irrigation, the second crop is expected to be harvested in February.
Desiya Karshaka Samajam (DKS) president Muthalamthodu Mani also urged the government to drop its plan to acquire paddy field through cooperative societies, citing two previous failures. “The companies don’t have mills or caches, so they are unlikely to be able to manage the purchase of paddy fields,” Mr Mani said.
DKS demands that the government immediately announce its purchase plans to avoid confusion and uncertainty among farmers. She warned that postponing the contract would not only cause significant losses to farmers but also encourage opportunities for corruption.
Meanwhile, the dispute over the percentage of rice to be extracted from paddy remains unresolved. While the central government mandates 66% paddy from farmers, rice mills in Kerala insist on 63.5%
The disagreement escalated into a dispute between the Center and the state, with the Center withholding around Rs 1,300 crore citing the state’s failure to provide complete accounts on public procurement.
Published – 14 Jan 2026 21:01 IST
