Punjab gets Rs 2,000 cr to clear paddy dues - State farmers can breathe easy as Centre releases last installment of cash credit limit

Tuesday, 09/12/2014

http://www.tribuneindia.com/news/nation/punjab-gets-rs-2-000-cr-to-clear-paddy-dues/15974.html

Chandigarh : With the Central Government finally releasing the last installment of Rs 2,000 crore of the cash credit limit this afternoon for clearing the dues of farmers in lieu of the paddy procured for the central pool, the Punjab Government can now breathe easy.

The Punjab Food and Supply Secretary DS Grewal said in the next two days, all dues of farmers and commission agents would be cleared. “We will transfer the money in the account of all concerned online in the next 48 hours”, said Grewal.

Facing flak from various factions of the Bharti Kisan Union (BKU) and the commission agents for not clearing the dues of farmers, the state government was in bind for the past three weeks. In all, the Centre has released Rs 20,451 crore to the state government in three installments, first two totaling Rs 18,451 crore.

State Food and Supply Minister Adesh Partap Singh Kairon remained on his toes for several days to get all the three installments released. Playing tough against the state government, the Union Finance Ministry took its time to release the money in installments and not in one go.

The Union Finance Ministry insisted that the state government should first settle the account involving Rs 42,000 crore pertaining to the foodgrain procured for the Central pool since 2002-03.

However, Kairon argued that the account, which is awaiting settlement for the past some years due to certain differences between the Centre and the state, could be finalized after the end of paddy season and there should no delay in releasing the money for procurement of paddy during the current season. Last Friday, Kairon spoke to Union Expenditure Secretary to get the last installment released.

Payment to farmers for paddy proved a big struggle for the state government. Interestingly, during the Manmohan Singh Government, state government did not face any problem as far as the release of money for the procurement of food grain for the Central pool was concerned.

Expecting arrival of 127 lakh tonnes in the market, initially the state government had sought release of Rs 23,448 crore from the Centre but later it reduced its demand to Rs 21,000 crore in view of less procurement.

The paddy procurement season has come to an end with total procurement of 118 lakh ---- 2.9 lakh tonne by the FCI and about 2 lakh tonne by private traders and the rest by the state government agencies.