Archive · 5 Jan 2026
Kerala Shifts Paddy Procurement to Cooperatives
The Kerala government has decided to let cooperative societies handle the buying of paddy from farmers.
This new system will start in the next season.
Farmers will sell their paddy directly to these cooperatives and get paid right away.
The cooperatives will then process the paddy and supply rice to the public.
The government will also help cooperatives with loans if they need extra money.
A special digital system will be set up to keep track of everything.
In the future, this might help create a special rice brand for Kerala.
Kerala government to entrust paddy procurement to cooperative societies starting the upcoming season.
Farmers will sell paddy directly to primary cooperative societies for immediate payment.
Nodal cooperative societies will be formed at the district or taluk level for processing and supply.
Government to provide financial assistance loans through Kerala Bank for cooperatives lacking surplus funds.
Digital portal to be set up for monitoring procurement and fund disbursal, aiming for long-term cooperative branding and price stability.
- Who
- Kerala Government, Primary Agricultural Cooperative Societies, Farmers
- What
- Shift in paddy procurement to cooperative societies
- When
- Upcoming season
- Where
- Kerala, India
- Why
- To ensure quicker payments, reduce delays, and avoid dependence on Paddy Receipt Sheet (PRS)-based loans
- Government Body
- Kerala Government
- Key Officials
- Chief Minister Pinarayi Vijayan, Finance Minister K N Balagopal, Cooperation Minister V N Vasavan, Food Minister G R Anil, Agriculture Minister P Prasad, Water Resources Minister K Krishnankutty, Local Self-Government Minister M B Rajesh, Chief Secretary Dr A Jayathilak
- Implementation Body
- Primary Agricultural Cooperative Societies
- Nodal Agency
- Supplyco
- Financial Support
- Special financial assistance loan scheme through Kerala Bank
- Monitoring Tool
- Digital portal for procurement and fund disbursal
- Long-term Goal
- Launch of state’s own rice brand, ‘Kerala Rice’