The Hindu Business Line : Move for constant supply of local rice thru PDS

IN a bid to support paddy growers in the state, the Kerala State Civil Supplies Corporation (KSCSC) would procure paddy directly from farmers from next year, for milling and sale of the good quality, traditional `kuthari' through the public distribution system (PDS).

For the first time, the corporation had supplied "kuthari" at low prices through ration shops in June 2005, and "we want to continue this for the benefit of farmers on the one hand and provide this rice to poor people on the other," Mr Adoor Prakash, Kerala Food and Civil Supplies Minister, told Business Line. This rice was, in fact, beyond the reach of poor people, he said.

The corporation had conducted a study on procurement of paddy at Minimum Support Price (MSP) and the report was submitted to the government, he said. The study team had visited Tamil Nadu, where paddy procurement is high, to study the system followed there, he said.

The corporation would procure paddy directly from farmers at the prevailing MSP, plus an incentive of Rs 0.95 per kg. However, this system could be extended to the entire state only by stepping up paddy cultivation on an economy scale, Mr Prakash said.

He said that at present 50,000 tonnes of rice per month were distributed through the PDS in the state.

He said the corporation had already procured 45,000 tonnes of paddy and was eyeing an additional 25,000 tonnes. The rice available for distribution after milling would come to around 48,000 tonnes. At present rice has been procured from Palakkad, Thrissur, Ernakulam, Alapuzha and Kottayam districts, while the milling and distribution was done in the respective districts to save on transportation cost.

Paddy cultivation in Kerala had declined over the past several years as it had become un-remunerative, he said. If growers were motivated to take up cultivation on an economy scale, by bringing in more areas under crop, besides ensuring that the entire produce would be procured by an agency, rice production could be increased, he said.

He said that the corporation had procured paddy at Rs 7 a kg, and after it was milled and transported to PDS shops the cost was approximately Rs 11.50 a kg. This "kuthari" is sold through the PDS at Rs 6.20 a kg to people below poverty line (BPL), and at Rs 3 a kg under the Anthyodaya Anna Yojana. Under Annapoorna, 10 kg rice is distributed free, he said.

The Centre would provide MSP of Rs 5.60 a kg in addition to other overhead expenses such as transportation etc., he said. The State Government must bear the difference in cost, he added.

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