RBI enhances Punjab CCL for wheat procurement to Rs 20,683 cr

Chandigarh, May 13 (IANS) With the wheat procurement season in full swing, the Reserve Bank of India (RBI) has enhanced Punjab's Cash Credit Limit (CCL) to Rs 20,683 crore, a state government official said here on Saturday.

With procurement of wheat crossing 118 lakh tonnes this season, the Punjab government has reported a record payment of Rs 14,053.61 crore to farmers for procurement.

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

A government spokesperson said that the state government made the highest ever payment to the tune of Rs 14,053.61 crore to the farmers during the year, as against Rs 59,38.21 crore in April 2016 and Rs 947.19 crore in April 2015.

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).

The total procurement of wheat this season so far stands at 118.08 lakh tonnes, out of which 115.47 lakh tonnes wheat has been purchased by the state government procurement agencies.

The procurement process started on April 1. Green Revolution state Punjab contributes nearly 50 per cent foodgrains to the national kitty despite having just 1.54 per cent of the country's geographical area.