Paddy arrival in state touches 1 lakh tonne, but no sign of CCL

THE RBI THAT SANCTIONS CCL HAS NOT GIVEN ITS CLEARANCE, ASKING PUNJAB’S FOOD AND CIVIL SUPPLIES DEPARTMENT TO CLEAR ITS OUTSTANDING

CHANDIGARH:Almost a week after paddy procurement began on October 1, arrival of the crop in 1,732 mandis across the state touched 1 lakh tonne on Sunday. The state government, however, is waiting for the release of Cash Credit Limit (CCL) from the Centre to pay farmers.

The exercise to get a CCL of ₹34,500 crore started a month back, but is still stuck. It is learnt that the Reserve Bank of India (RBI) that sanctions the CCL has not given its clearance, asking Punjab’s food and civil supplies department to clear its outstanding. The CCL is a scheme of the Union finance ministry, and the RBI monitors it, through representatives of a consortium of banks. The CCL is released after the consortium clears it.

Previously, the Centre had told the Punjab government that it was not releasing the payment as the state was wary of implementing the Public Finance Management System (PFMS). This was a system that was meant to streamline the payment of the Minimum Support Price (MSP) to at least 15 lakh farmers in the state.

The Centre also wanted the state food department to upload payment details on the web portal. This season, 170 lakh tonne paddy is expected to be procured.

GAP OF ₹1,400 CRORE

The state government, on its part, announced the implementation of the PFMS and started steps to operationalise it, yet the CCL has been held back, because of a gap of ₹1,400 crore from the previous years.

“The gap emerged, as Punjab has given an overdraft of ₹500 crore to commission agents (arhtiyas) as their 2% charges for assisting the government in previous procurement of wheat. The Centre has not reimbursed this. Another ₹500 crore has been held back,” claimed an officer in the food department.

Last week, principal secretary, food and civil supplies, Punjab, KAP Sinha was in New Delhi seeking the release of CCL.“Despite our best efforts at the Centre, things have not worked out in the state,” adds an officer.

The arhtiyas are apprehensive that disclosing bank accounts of all farmers means that they would be pushed out of the procurement process; the state government has contested this, saying that there was so such move.

Emphasising the urgent need for the CCL, a top official in the food department, said, “The entire process of paddy arrival will wind up in three weeks and we need the CCL to pay farmers.”