Bank loan

Telangana State Civil Supplies secures 12,000 crore bank loan to pay MSP to rice farmers

Hyderabad: Telangana secured a loan of Rs 12,000 crore from several banks to pay MSP (minimum support price) to farmers for purchasing 60 lakh metric tons of paddy in Rabi. To help farmers sell rabi crops, the state government decided to set up 6,983 paddy supply centers. As a pilot project, the authorities have already set up 536 paddy supply centers in the districts where the rabi harvest is underway and the authorities have already purchased 1,200 tons of grain.

The Telangana State Civil Supplies Corporation needs 15 crore of jute sacks to store paddy purchased from godowns, however, only 1.6 crore of jute sacks are available from the department. Officials are in the process of ordering 6.15 crore jute sacks while a tender will be launched to purchase another 8 crore jute sacks.

The State Civil Supplies Corporation has also arranged the necessary funds to pay farmers when the paddy procurement process begins in the state. So far, Rs. 4,350 crore has been donated to the Civil Supplies Department. This fund will be enough to purchase 22 lakh metric tons of grain from farmers.

Also read: TRS MPs get grades on their performance

Meanwhile, Civil Supplies Minister Gangula Kamalakar said 51 checkpoints have been set up at the borders of the four neighboring states to prevent the influx of grain into the state. The BJP has criticized the TRS government’s ban on the entry of paddy from other states, saying it is against central government rules.