Kerala Chief Minister Pinarayi Vijayan on Wednesday said that the state cabinet will consider allocating Rs 63.37 crore as compensation to paddy processing mill owners in relation to the out-turn ratio (OTR) for the 2022-23 procurement year.

The CM also said that the state does not have the authority to change the out-turn ratio (OTR) of 68 per cent set by the central government.

OTR is the amount of rice to be produced by mill owners for every quintal of paddy.

Vijayan made the announcement, in a statement, after a meeting with the mill owners to discuss issues related to paddy procurement.

The statement, issued by his office, said that the government and the mill owners have reached an agreement to facilitate paddy procurement.

He further said that Kerala was facing difficulty in procuring paddy as per the norms set by the Centre.

Therefore, the central government will be requested to take the necessary steps to resolve the issue, the CM said in the statement.

The CPM has also promised the CPI to constitute a Sub-Committee to assess the provisions of PM SHRI and study ways to keep its offensive portions from seeping into Kerala's education stream. In addition, the implementation of the PM SHRI project will be kept in abeyance till the Committee submits its report.

A top CPI source said the party did have concerns about the compromise formula but would still play along. "The formation of the sub-committee is a clear indication that the CPM intends to implement PM SHRI. The government is still not willing to walk out of PM SHRI. We suspect that the sub-committee formed to study the scheme will be dominated by the CPM. And if the committee thinks the project is harmless, then we will be back to square one," the CPI leader said, and then added: "Even then, the party is pleased that it could force the CPM to make amends, even if not fully to our satisfaction. Our main objective was to keep the LDF thinking strictly to the left."

Vijayan also said that the state government will take reasonable steps from 2025-26 onwards to compensate the losses incurred by the millers due to the difference in the out-turn ratio.

The CM further said that the central government has been requested to sanction the charges related to the transportation of paddy and once it is received, it will be paid to the mill owners.

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