Foodgrain procurement: RBI sanctions enhanced credit limit for Punjab | punjab | Hindustan Times
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Foodgrain procurement: RBI sanctions enhanced credit limit for Punjab

The RBI has also directed the state government to ensure that all its food credit accounts are always backed by fully paid stock value as per norms.

punjab Updated: May 13, 2017 17:43 IST
HT Correspondent
Reserve Bank of India
Reserve Bank of India (HT File Photo)

The Reserve Bank of India (RBI) on Saturday sanctioned more cash credit limit (CCL) for Punjab to a total of Rs 20,683 crore.

Giving this information, a spokesperson of the government stated that while extending the earlier sanctioned limit of Rs 17,994.21 crore by another month from the previous date of April 30, 2017, the central bank has also sanctioned an additional limit of Rs. 2,688.79 crore for the May purchase, according to an official spokesperson.

The RBI has also directed the state government to ensure that all its food credit accounts are always backed by fully paid stock value as per norms.

In a letter to Punjab’s principal secretary (finance), the RBI said the CCL enhancement had been made to address the urgent need for payment for the ongoing wheat procurement and in the light of the assurance of the State Bank of India (SBI).

As per government figures, the state government has reported a record payment of Rs14,053.61 crores to farmers for procurement in the current season till April this year.

The chief minister has directed the state procurement agencies to take immediate steps to ensure that all pending dues of the farmers are cleared promptly and timely payments are made for fresh procurement made during May, following the RBI move.

A government spokesperson said that in pursuance of Captain Amarinder Singh’s firm commitment to ensure prompt, hassle-free and smooth procurement of food grains, the state government made the highest ever payment to the tune of Rs 14,053.61 crore, to the farmers during end of this year, as against Rs 5,938.21 crore in April 2016 and Rs 947.19 crore in April 2015.

The total procurement of wheat this season so far stands at 118,08,318 MT, of which 115,47,340 MT has been purchased by the state government procurement agencies.