Home Madrid Economy UP plans Rs 3,000 cr loan for purchase of paddy as protests over farm bills mount

UP plans Rs 3,000 cr loan for purchase of paddy as protests over farm bills mount

0

Uttar Pradesh will raise Rs 3,000 crore in bank loans for

The short-term working capital loan would come from public 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 Department of Food and Civil Supplies to perform the field

The MSP for grade A and common variety paddy this kharif season has been set at Rs 1,888 per quintal and Rs 1,868 per quintal. The government would act as guarantor for the SFC’s Rs 3,000 crore credit window, while the interest payment on the loan, until it is finally repaid by the SFC, would also be borne by the government. State.


READ ALSO : Over 16,400 tons of paddy purchased from Punjab MSP, Haryana: Govt

A total of 4,000 supply centers would be set up by the various state supply agencies, including around 100 managed by the Food Corporation of India (FCI).

The supply season in the western districts of UP would be effective from October 1 to January 31, 2021, while in the eastern pockets of UP paddy supply would start on October 15 and would continue until February 28, 2021.

Manish Chauhan, Commissioner of Food and Civil Supply of UP, said the process of registering rice millers, for custom milling of paddy, is ongoing and so far 1,905 mills have counted, of which 1,736 had been geolocated. Food storage depots are also geolocated.

Meanwhile, nearly 160,000 farmers had already registered on the food department’s portal to sell their paddy crop. According to government estimates, the state recorded paddy production of over 26.4 MT during the 2020-21 kharif marketing season. The government expects rice production of about 17.7 MT this year.

Last year, paddy production in UP stood at 24.4 MT, while the government purchased 5,657 MT of paddy from farmers.

Dear reader,

Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.

Support quality journalism and subscribe to Business Standard.

digital editor