RBI okays Rs 22,403 crore for paddy procurement

Amaninder Pal

Tribune News Service

Chandigarh, September 29

The Reserve Bank of India (RBI) today sanctioned a cash credit limit (CCL) of Rs 22,403 crore for the purchase of paddy in the state. The RBI’s sanction has come two days before the start of procurement.

Five state-run procurement agencies will use the money to purchase about 113 lakh metric tonnes of paddy in October.

For this kharif marketing season, the state has sought Rs 26,089 crore as the CCL. The remaining amount is expected to be sanctioned by the RBI in the last week of October. After getting the go-ahead from the Union Finance Ministry, the state will approach the consortium of banks, which will release the money.

Shiv Dular Singh Dhillon, Director, Department of Food and Civil Supplies, said around 160 lakh metric tonnes of paddy was expected to arrive in the state’s grain markets this year.

About 1,830 procurement centres have been set up across the state.