Re­leases 2.6k cr to Pay for Wheat

The Economic Times - - Companies: Pursuit Of Profit - Par­shant.Krar@ times­

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.

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