The Andhra Pradesh Civil Supplies Corporation, which had procured paddy from the farmers during the rabi season (2019), has no funds to clear the dues.
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With the farmers’ dues touching ₹1,200 crore, the corporation is waiting for assistance from the government.
Sources said that the corporation had procured 31,51,832.200 tonnes of paddy from the farmers in the State during the Rabi Marketing Season-2019. More than 2.13 lakh farmers benefited with the procurement that was worth ₹5,741.85 crore. The government had so far paid ₹4,910.01 crore. It, however, could clear the dues of 1,88,497 farmers.
“There is a tremendous pressure from the farmers to clear the dues,” an official said on condition of anonymity.
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The corporation needs not less than ₹8,000 crore if kharif requirements are also to be taken into consideration. It, however, needs ₹1,200 crore immediately.
In the normal course, the Centre reimburses the expenditure incurred by the government on procurement, storage and distribution of stocks through the totally decentralised procurement process.
‘Bankers unwilling’
Meanwhile, the corporation has been exploring all available options. The bankers too are not willing to sanction new loans.
“The banks are not forthcoming. Right now, we are managing the show with the term loan of the National Bank for Agriculture and Rural Development (NABARD),” the official said.
The corporation has already availed of a loan of ₹3,000 crore from the banks to facilitate uninterrupted procurement of paddy from the farmers. The loan is to meet the working capital requirement for procurement. The loan is usually repaid as and when the government releases the subsidy component, which is shared by both the Central and State governments, on the foodgrains procured and distributed through the Public Distribution System.
The government had earlier announced that the farmers would be paid within 72 hours of procurement.