Punjab govt seeks more funds from Reserve Bank

Punjab government has asked the Reserve Bank to increase the credit limit so that payments could be made to farmers in view of the bumper paddy output, which led to a higher procurement by the state agencies.
State Food and Civil Supplies Minister Adaish Partap Singh Kairon today said RBI had sanctioned a limit of Rs 18,972 crore for paddy procurement this year.
This was later enhanced to Rs 20,608 crore.
The minister, who had a meeting with a delegation of commission agents here, said the government has urged RBI to enhance the limit to Rs 25,225 crore so that pending payments to the agents and farmers could be released.

The minister assured the that payments would be made latest by January 8.
Against the 119 lakh tonnes of paddy procured last year, government agencies procured over 140 lakh tonnes of paddy this season (October 1 to December 15).
Following the minister's assurance, Vijay Kalra, President of the Federation of Arhtiya Association, agreed to call off the protest rally planned on December 28.