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Keralam Sanctions Rs 63.37 Crore to Clear Supplyco Paddy Liabilities
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News18•14-10-2026, 10:00
Keralam Sanctions Rs 63.37 Crore to Clear Supplyco Paddy Liabilities
- •The Keralam government has sanctioned Rs 63.37 crore to clear Supplyco's financial liabilities from the 2022-23 paddy procurement season.
- •The funds are allocated from the state budget to compensate mill owners who processed paddy during the period.
- •The liability stems from the Centre's refusal to lower the rice recovery out-turn ratio from 68 percent to 64.5 percent.
- •Mill owners argued that the unique characteristics of paddy grown in regions like Kuttanad make the 68 percent recovery rate unachievable.
- •The state government plans to again urge the Centre to revise the out-turn ratio and will appoint a committee to study future losses.
Key Questions Answered
The Keralam government allocated Rs 63.37 crore from the state budget to compensate mill owners who processed paddy procured through Supplyco during the 2022-23 season.
The financial liability arose because the Centre refused to reduce the out-turn ratio for rice recovery from 68 per cent to 64.5 per cent, which mill owners argued was too high due to the special characteristics of paddy grown locally in regions like Kuttanad.
The state government plans to once again urge the central government to revise the out-turn ratio to account for Keralam's special circumstances and will also appoint a committee to study future losses arising from the recovery ratio difference.