Kerala Halts PM SHRI, Forms Panel; ₹63.37 Cr for Paddy Millers

Thiruvananthapuram: The Kerala government on Wednesday decided to put on hold the implementation of the Centre’s PM SHRI school scheme amid internal coalition concerns and controversies, while approving ₹63.37 crore as compensation to paddy processing mill owners over the 2022-23 out-turn ratio (OTR) dispute.

Chief Minister Pinarayi Vijayan announced that a seven-member cabinet sub-committee, chaired by General Education Minister V Sivankutty, has been formed to thoroughly examine the PM SHRI rollout. Members include Ministers K Rajan, P Rajeeve, Roshy Augustine, K Prasad, K Krishnankutty, and A K Saseendran.

“Further proceedings on PM SHRI will remain suspended until the sub-committee submits its report. This decision will be formally conveyed to the Centre,” Vijayan told reporters after the cabinet meeting.

The move follows prolonged discussions within the ruling Left Democratic Front (LDF), particularly strong opposition from the CPI, whose state and national leadership resisted Kerala’s participation in the scheme. Despite Vijayan’s direct intervention, a consensus could not be reached earlier.

In a separate decision, the cabinet agreed to allocate ₹63.37 crore to compensate mill owners for losses due to the Centre-mandated 68% OTR—the amount of rice to be produced from every quintal of paddy. Vijayan clarified that Kerala lacks authority to revise the central norm.

After talks with mill owners, an agreement was reached to streamline paddy procurement. The state will also urge the Centre to resolve procurement bottlenecks and sanction pending transportation charges, which will be passed on to millers once received.

From 2025-26, the government pledged to introduce measures to offset millers’ ongoing losses linked to the OTR gap.

The twin decisions reflect Kerala’s balancing act between asserting autonomy in education policy and addressing agricultural sector grievances while navigating Centre-state fiscal and administrative constraints.