CAPT AMARINDER WRITES TO UNION FINANCE MINISTER FOR CCL AUTHORISATION OF RS. 26,064.32 CR FOR RMS 2020

CAPT AMARINDER WRITES TO UNION FINANCE MINISTER FOR CCL AUTHORISATION OF RS. 26,064.32 CR FOR RMS 2020

NABAZ-E-PUNJAB BUREAU, CHANDIGARH, APRIL 1:
Punjab Chief Minister Captain Amarinder Singh has written to Union Finance Minister Nirmala Sitharaman seeking her personal intervention to direct the Reserve Bank of India for expeditious authorization of Cash Credit Limit (CCL) of Rs 26064.31 crore for Rabi Marketing Season 2020.
In a letter to the Finance Minister, Captain Amarinder said that the immediate release of CCL would not only ensure smooth procurement of Wheat crop but also relieve the farmers, already suffering unprecedented stress, from a lot of anxiety.
Captain Amarinder further apprised the Finance Minister that the Punjab Government had already submitted its proposal to RBI for sanctioning authorization for CCL of Rs 26064.31 crore during the RMS.
The Chief Minister also informed Sitharaman that the state was facing an unprecedented crisis because of the ongoing lockdown in view of COVID-19 pandemic and procurement of Rabi crop, which was due to begin on April 1, 2020, was now going to start with effect from April 15. However, this would be possible only if the RBI issues authorization against the state’s projection of estimated amount to procure 114.76 LMT wheat.
According to the proposal enclosed with this letter, the Union Ministry of Food and Consumer Affairs had fixed the MSP for the procurement of wheat during RMS 2020-21 @ Rs 19,250 per MT. The state procuring agencies viz Pungrain, Markfed, Punsup and PSWC were likely to incur 3,463.70 PMT as statutory charges, transportation handling, Mandi charges and cost of bags.
The tentative cost of bagged wheat works out to Rs.22,713.70 (day 22,714/)PMT. About 114.75 lakh tonnes of wheat is targeted to be purchased from the farmers, costing Rs 26,064.32 crore, said the Chief Minister.