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Published On:25 February 2012
Posted by Indian Muslim Observer

Madhya Pradesh Govt. seeks Rs. 11,000 cr. credit limit from RBI

By Pervez Bari


Bhopal: The Madhya Pradesh State Government has made all-round preparations to procure over 65 lakh tonnes of wheat on support price this year.


A Rs. 11,000 crore credit limit has been sought from Reserve Bank of India for payment of support price and bonus to farmers. Payment to farmers through their bank accounts will be ensured within a week after procurement. For the first time in the state, e-procurement system has been introduced this year under which a total of 11.73 lakh farmers have been registered online between the prescribed period of October 2011 and February 2012.


It is the State Government which has to make immediate payments of the support price fixed by the Union Government and the bonus announced by Madhya Pradesh government. The State Government also makes arrangements of funds for expenditure on packing, labour, transport and storage etc. The amount of support price and operational expenditure is reimbursed later on but after a long time. Despite this, the State Government is constantly increasing the quantity of procurement and number of farmers with a view to ensuring the scheme’s benefits to maximum number of farmers.


The State Government had made a record procurement of 49.64 lakh metric tonnes of wheat and benefited over 8 lakh farmers last year. Due to it, payment of Rs. 8,244 crore was made immediately to them. It included Rs. 7500 crore as support price, Rs. 496 crore as the bonus announced by the State Government and Rs. 248 crore as the bonus announced for the first time by the Union Government that year.


In view of estimated record-breaking procurement of additional 15.36 lakh metric tonnes of wheat and increase in the number of farmers by 3.65 lakh, the Madhya Pradesh State Government is going to obtain credit of Rs. 11,000 crore from Reserve Bank of India. This year, advance registration of 11.73 lakh has been made. In view of state Chief Minister Shivraj Singh Chouhan’s latest announcement, the process of advance registration has been restarted from February 24 and will be continue till March 4. The number of registered farmers will increase even more in the wake of this process to be taken up at MP Online kiosks and Citizens Felicitation Centres.


Meanwhile, out of 49.64 lakh metric tonnes of wheat procured by the State Government last year, 29 lakh metric tonnes of surplus wheat has to be transferred to the Central Pool. Due to State Government’s sustained efforts, Food Corporation of India has decided to lift the surplus wheat from godowns. Out of the outstanding dues, only Rs. 3,494 crore has been made available to State Civil Supplies Corporation so far. The State Government is utilising 21 lakh metric tonnes of wheat procured last year to meet the requirements of public distribution system in the state.


[Pervez Bari is a senior Journalist based at Bhopal, Madhya Pradesh. He is associated with IndianMuslimObserver.com as Bureau Chief (Madhya Pradesh). He can be contacted at pervezbari@eth.net]

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Posted by Indian Muslim Observer on February 25, 2012. Filed under , . You can follow any responses to this entry through the RSS 2.0. Feel free to leave a response

By Indian Muslim Observer on February 25, 2012. Filed under , . Follow any responses to the RSS 2.0. Leave a response

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