Palakkad: In 1980, 29-year-old S Mohandas left his job as an accountant at a chemicals company in Kochi to return to Palakkad and take up his father's occupation — paddy cultivation. "My calculation was simple: one bullock cart could carry 10 sacks of grains, and I would earn Rs 750 for 500 kg, almost equivalent to the price of one sovereign (8g) of gold back then," recalled Mohandas, now 73. "Today, a farmer with 10 acres struggles to maintain even the lifestyle of an office attendant and often lives in constant debt."
With today's procurement rate, Mohandas would receive Rs 21,150 for 750 kg of paddy, for an investment of nearly Rs 30,000 to Rs 35,000. As for gold? The price has soared to Rs 58,880 for one sovereign. The young Mohandas may be seen as dreamy and hence disappointed, but Palakkad's paddy farmers with feet firmly rooted in the slushy fields are also mightily miffed, particularly with the Left Democratic Government in Kerala.
"Our incomes have stagnated for the past three years because the state government cuts its share in the procurement rate by nearly the same amount the Union government raises the minimum support price (MSP)," said Reghu Mathur, a paddy farmer in Mathur grama panchayat in Palakkad Assembly segment. This year, the Union government increased the MSP by Rs 1.17 to Rs 23.
The state government usually announces its incentive bonus before the harvest. Now, the harvest season is coming to an end, and yet the state government is not declaring the bonus. "Like in the past three years, the government is likely to slash its bonus by around Re 1, but it wants to avoid a backlash during the byelection," Sajeesh Kuthanur (49), another paddy farmer, said, explaining the delay.
Paddy farmers said they are increasingly voting for NOTA (none of the above) during elections because mainstream parties and their farmers' organisations do not take up their cause. In Alathur Lok Sabha constituency, 12,033 voters chose NOTA, the highest in Kerala, in 2024. Four of the seven assembly segments in Alathur are in Palakkad district. In Palakkad Lok Sabha constituency, 8,793 voters chose NOTA, in the recent election. "Most of them are farmers. You will see a similar high number of NOTA in this Palakkad byelection," said Raghu Mathur.
How state govt picks farmers' pocket
The procurement price of paddy includes the Union government’s MSP and the Kerala government’s State Incentive Bonus. Since 2015-16, the Union government has steadily raised the minimum support price (MSP) for paddy from Rs 14.10 to Rs 21.83 per kg — an increase of nearly 56%. In contrast, the LDF-led Kerala government’s State Incentive Bonus has only been raised twice during the same period. More concerning for farmers, since 2021-22, the state has been cutting its incentive bonus each year, effectively erasing much of the Union’s MSP hikes. This bonus has dropped from Rs 8.8 to Rs 6.37 per kg, stagnating farmers' income and driving many into debt.
In 2019-20, farmers received Rs 26.95 per kg of paddy (MSP of Rs 18.15 plus Rs 8.8 bonus). The following year, the rate nudged up to Rs 27.48 due to a 53-paise MSP increase and no bonus change. In 2021-22, the Union added 72 paise, but the state cut 20 paise from its bonus, bringing the procurement price to Rs 28 per kg. This pattern continued: in 2022-23, the Union’s Re 1 increase was offset by an 80-paise bonus cut from the state, lifting the price by just 20 paise to Rs 28.2.
Last year, the MSP rose by Rs 1.43 to Rs 21.83, but the state slashed the bonus by the same amount. This year, the Union has set the MSP at Rs 23 with a Rs 1.17 increase. However, the state government has not announced its incentive bonus.