Releases 2.6k cr to Pay for Wheat
Punjab on Friday released .₹ 2,612.50 crore to pay for wheat procured during the current rabi marketing season, offering relief to farmers who were worried about payments because of central bank curbs on cash credit limit meant for food grain purchase.
The Akali Dal-BJP coalition government was in a spot of bother after the RBI held back the credit. The RBI had also told banks to make provisions against loans given to Punjab for purchase of grains, suspecting large shortages. The state had refuted it, maintaining that the costs showed were the actuals for procurement, storage and transportation of grains. Farmers were awaiting lifting of their wheat from mandis as the process was delayed due to the debacle.
On Wednesday the RBI sanctioned a cash credit limit of .₹ 17,523 crore for wheat procurement in Punjab.