The Kerala government has accused the Centre of deliberately denying the minimum support price (MSP) dues to paddy farmers in the State.

Food and Civil Supplies Minister G.R. Anil, who addressed mediapersons here on Monday, said the Central government has withheld a total of ₹2,601 crore owed to Kerala’s paddy farmers, including ₹1,259 crore pending since the 2017-18 fiscal year, and ₹1,342 crore for paddy procured in the 2024-25 procurement season.

“Not a single rupee has been released under the MSP category for the present season so far, despite repeated claims and follow-ups,” he pointed out.

The State’s paddy procurement is conducted under the Centre’s Decentralised Procurement scheme, under which the responsibility for procurement lies with State-run agencies, but the financial support comes from the Centre. The MSP, which is currently fixed at ₹23 per kg, is both determined and supposed to be disbursed by the Central government. Additionally, the Kerala government provides a State Incentive Bonus of ₹5.20 per kg.

However, the denial of the MSP component by the Centre has forced the State to shoulder the entire burden, according to Mr. Anil.

He also highlighted the earlier practice of submitting claims for MSP reimbursement to the Centre every quarter, with provisions in place for advance payments. However, from the 2025–26 procurement season onwards, the Central government has withdrawn the provision for advance payment.

Although the new policy allows for monthly claims, the Centre has not disbursed the ₹159 crore claimed for the months of April and May 2025. This denial could directly impact farmers ahead of the Onam festival, the Minister cautioned.

He was also critical of the Centre’s “stringent and often impractical” quality norms regarding moisture content and out-turn ratio (OTR) which, he alleged, are not suitable for Kerala’s unique climate and geographical nature, particularly in areas such as Kuttanad. As a result, farmers often face difficulty in meeting the Food Corporation of India’s Fair Average Quality (FAQ) standards.

Despite financial constraints, the Kerala government has managed to disburse ₹1,285 crore out of the total ₹1,645 crore owed to farmers for the 2024–25 procurement season, he said.

Of this, ₹412.4 crore has been paid to 57,529 farmers during the first crop season of 2024-25, and ₹873 crore has been paid to 1,49,615 farmers for the second crop procurement, which concluded in July. The remaining ₹359.36 crore will be disbursed before Onam, Mr. Anil said.