165 lakh-tonne paddy arrives in state mandis

The Centre has enhanced the cash credit limit (CCL) for paddy procurement in Punjab to ₹32,612.25 crore after the arrival of paddy in state mandis touched 165 lakh tonne-mark against the expected 113 lakh tonne.

The Reserve Bank of India (RBI) on Saturday sanctioned the enhancement on a plea by the state government, which was sent about ten days ago. Earlier a limit of ₹22,403.62 crore was sanctioned.

Notably, the RBI had released a limit of ₹20,451.31 crore in October this year while as per the cost sheet sent by the state government, a sum of ₹28,154.26 crore was required to procure 113.35 lakh tonne of produce.

Payments of large amount of paddy procured by five state procurement agencies were pending, because the limit received in October lapsed on the last working day of the month, which led to delay in payments. The lapsed funds were renewed by the Centre. Due to delay in arrival of cash into the state accounts, payment to farmers got delayed. Sources said food and civil supplies minister Adesh Partap Singh Kairon met RBI officials in Mumbai last week to seek enhancement of CCL.

Meanwhile, paddy procurement in the state is on its last leg as the arrivals have now reduced to negligible.

“The state food and civil supplies department will now seek the consent for release of enhanced CCL. After the limit is credited into our accounts, the payment to farmers would reach in a week,” said an official of the department.

CENTRE ENHANCES CASH CREDIT LIMIT FOR PROCUREMENT TO OVER ₹32,000 CRORE