The 86-year old poet, recipient of various honours including the prestigious Sahitya Akademi award, passed away due to age-related ailments, they added.
His poems traced the sufferings of mankind involving all the complexities of a highly urbanised system.
Some of his major collections include 'Kalikalam', 'Pedithondan', 'Theerthayathra'and 'Bhangiyum Abhangiyum'.
He also received the Sahitya Akademi Award for his autobiography 'Kathayillathavante Katha' in 2013.
Paloor won the Kerala Sahitya Akademi Award, the state's highest literary honour, in 1983 for his collection 'Kalikalam'.
Kerala Chief Minister, Pinarayi Vijayan condoled his death.
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