UP plans Rs 3,000 cr loan for procuring paddy as farm bills protests mount

State seeks funds for minimum support price it will pay to farmers, guarantees interest on loan.

Uttar Pradesh will raise Rs 3,000 crore as bank loans for paddy procurement on minimum support price (MSP), announcing the decision as farmers protest legislations Parliament passed in September to reform the agriculture sector.
 

The short-term working capital loan would be sourced from state-owned lenders offering the minimum interest rate to UP State Food and Essential Commodities Corporation Limited (SFC).

The SFC would then allocate funds to the state food and civil supplies department for effecting the field paddy procurement. The proposal to raise Rs 3,000 crore in short-term loan/cash credit limit to facilitate seamless procurement of paddy from the