Punjab requests Centre to raise Cash Credit Limit as paddy arrivals exceed procurement levels
GS3Economy · S&T · Environment · Security· MSP, procurement, PDS & food security· Mains·
Why in news
Punjab requested the Centre to increase its Cash Credit Limit (CCL) as paddy arrivals exceeded the sanctioned procurement level of 180 LMT.
Background
Punjab was sanctioned a CCL of Rs 42,787 crore for 180 LMT of paddy. By November 11, arrivals reached 177 LMT, prompting a request to raise the target to 200 LMT to clear unsold stocks in mandis.
Facts for Prelims
- FactPunjab's sanctioned Cash Credit Limit (CCL) for paddy procurement: Rs 42,787 crore
- FactOriginal paddy procurement target for Punjab: 180 LMT
- FactProposed paddy procurement target to clear unsold stocks: 200 LMT
- FactPunjab's Civil Supplies and Consumer Affairs Department introduced fixed procurement quotas for purchase centres based on 3-year averages
For Mains
Q. Discuss the challenges in managing agricultural procurement and the fiscal implications of bumper harvests on state-level procurement limits.
Dimensions to cover in your answer
- Fiscal constraint: Limited Cash Credit Limits (CCL) hindering the state's ability to procure surplus produce during bumper harvests
- Logistical bottleneck: Closure of procurement centres despite ongoing arrivals leading to unsold stocks in mandis
- Policy friction: Conflict between fixed procurement quotas and expanding cultivation areas affecting farmer access to markets
Keywords: Cash Credit Limit · MSP procurement · Kharif marketing · mandis · fiscal federalism · agricultural surplus
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