The State government and rice mill owners reached an agreement to ensure the smooth procurement and storage of paddy at a meeting chaired by Chief Minister Pinarayi Vijayan here on Wednesday.
The meeting was convened to discuss the mill owners’ demand for revising the out-turn ratio (OTR) of common rice. While the Centre has fixed a OTR ratio of 68% (68kg of rice for every quintal of paddy), the mill owners have sought a revision to 64.5%, citing productivity losses caused by changing climatic conditions.
High Court ruling
Although the State government had earlier supported the demand, the Kerala High Court ruled that the State lacks the authority to alter the ratio set by the Centre.
Nonetheless, the Chief Minister announced at the meeting that the Cabinet would consider approving ₹63.37 crore as compensation to rice mill owners for losses incurred during the 2022-23 procurement year due to the OTR mandated by the Centre.
Clarifying that the State does not have the authority to alter the prescribed OTR, Mr. Vijayan pointed out that Kerala faces practical difficulties in adhering to such national standards due to its unique climatic and agricultural conditions. Under such circumstances, the State government would appeal to the Centre to revise the ratio to better reflect local realities.
The Chief Minister also said that from the 2025-26 harvest season onward, the State government would compensate mill owners for losses arising from variations in OTR.
Transportation charge
In addition, the State has requested the Centre to sanction transportation charges for paddy movement. Once approved, the entire amount will be passed on to the mill owners, he said.
Food and Civil Supplies Minister G.R. Anil, Finance Minister K.N. Balagopal, Cooperation Minister V.N. Vasavan, Electricity Minister K. Krishnankutty, Agriculture Minister P. Prasad, and senior bureaucrats were present at the meeting.
Published – October 29, 2025 03:59 pm IST
