Andhra Pradesh approves loan of Rs 2000 crore for paddy procurement

17-Jul-2024 05:24 PM

Vijayawada. Andhra Pradesh Cabinet has approved the Civil Supplies Department to obtain a loan of Rs 2000 crore (20 billion) from banks and financial institutions for paddy procurement.

In a cabinet meeting chaired by the Chief Minister of the state, some other proposals were also approved.

This includes the new sand policy for which guidelines have not been issued yet. After the cabinet meeting, the Chief Minister of Andhra Pradesh left for Delhi where he will meet the Union Home and Cooperation Minister among others.

It is worth noting that the Union General Budget is going to be presented in the Lok Sabha on July 23 and before that the Chief Minister's visit to Delhi is considered very important.

Telugu Desam Party (TDP) is also included in the Central Government. Before that, the session of Andhra Pradesh Legislative Assembly is going to start from July 22.

Paddy is cultivated on a large scale in Andhra Pradesh and like other states, sowing of this staple food grain has started there too. Andhra Pradesh is also one of the important states contributing rice to the central pool.

The Civil Supplies Department of Andhra Pradesh will procure paddy from farmers at the Minimum Support Price (MSP) on behalf of the Food Corporation of India.

Usually, the government procurement of Kharif paddy starts from the month of October. To pay the prices of paddy to farmers on time, the Civil Supplies Department has now been authorized to take a loan of Rs 20 billion from banks for which the state government will provide guarantee.