Woes of paddy growers continue amid uncertainty over PRS loans

The Hindu

04-05-2025

After facing delays in procurement payments, Kerala's paddy farmers are now reeling from another blow as banks refuse to issue loans against paddy receipt sheets (PRS), triggering widespread anger among farming communities.
PRS loans serve as payments for the paddy procured from them by the government. The delay in issuing these loans is now hindering the preparations for the upcoming 'Punja' farming season in Kuttanad and Upper Kuttanad, regions where farmers depend heavily on timely credit to begin the next crop cycle.
According to farmers, many of them are reeling under debt crisis and are unable to commence the preparations for the upcoming season. The tendering for the dewatering of the fields usually begins in May, but financial constraints are hindering many farmers from starting the process. Farmers also point out that paddy procurement is slow in many paddy fields in Kuttanad and Upper Kuttanad region.
Roping in banks
This year, the State government has enlisted the State Bank of India (SBI) and Canara Bank to provide loans against PRS. But while a formal agreement was made, farmers claim key details remain unclear. The banks, on the other hand, argue that pending dues from last year's PRS-based loans have left them crippling.
Canara Bank has now withdrawn entirely from the scheme, citing the need for higher interest rates, a move that has provoked strong criticism from the Nelkarshaka Samrakshana Samithi, which plans to meet in Changanassery on Tuesday to chart out protests against the bank's position. At the same time, SBI has agreed to issue loans but only against PRS dated up to March 15.
'The State government should establish a revolving fund to ensure timely payment for procured paddy. This fund can be financed using the fees collected for land conversion under the Kerala Conservation of Paddy Land and Wetland Act, 2008,' said Sonichan Pulinkunnu, general secretary of the Paddy Farmers' Protection Council in Kuttanad.
He, however, alleged that the government has not even utilised the advance amount being provided by the Union government with respect to paddy procurement. The delays in repaying PRS loans by the Civil Supplies Corporation are negatively impacting farmers, as their CIBIL scores are being affected, he said.
The farmers, meanwhile, also point out that assurances by the authorities to bring the Kerala Bank into the PRS loan scheme too remain unfulfilled.