Punjab CM writes to Nirmala Sitharaman for CCL authorisation of Rs 26,064.32 cr for RMS 2020

By Rajan Nath - April 02, 2020 1:04 pm

Punjab Chief Minister Captain Amarinder Singh on Thursday wrote to Union Finance Minister Nirmala Sitharaman seeking her personal intervention to direct the Reserve Bank of India (RBI) for expeditious authorisation of Cash Credit Limit (CCL) of Rs 26064.31 crore for the Rabi Marketing Season 2020.

In a letter to the Nirmala Sitharaman, Captain Amarinder Singh said that the immediate release of CCL would not only ensure smooth procurement of wheat crops but also relieve the farmers who are suffering from unprecedented stress, from lot of anxiety.

Captain Amarinder Singh further apprised the Finance Minister Nirmala Sitharmana that the Punjab Government had already submitted its proposal to RBI for sanctioning the authorisation for CCL of Rs 26,064.31 crore during the RMS.

The Chief Minister has also informed Nirmala 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 authorisation against the state’s projection of estimated amount to procure 114.76 LMT wheat.

Meanwhile, 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.

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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, the Chief Minister said.