MP cupboard approves scheme to assist govt procurement businesses

[ad_1]

The Madhya Pradesh authorities in a Cupboard assembly Tuesday gave its nod to MP Mukhyamantri Krishak Uparjan Sahayta Yojna, a scheme aimed toward offering budgetary allocation to allow authorities businesses resembling Meals and Civil Provides Company and Markfed to tide over operational losses incurred throughout procurement of grains from farmers.

The announcement comes at a time the MP authorities has suffered a cumulative operation lack of almost Rs 6,000 crore in procurement of grains, and one other Rs 12,000 crore is caught in unsettled accounts of grains procured by the Centre.

The MP authorities procures grain by means of the Division of Meals Civil Provides and Client Safety, together with MP Markfed. It receives funds for procured grain from the Centre after the inventory is lifted. These businesses in flip borrow loans to pay farmers inside 10 days, whereas awaiting its dues with the Centre to be settled.

“This scheme had been introduced to make sure businesses resembling MP Markfed out of the vicious cycle of paying heavy curiosity on loans taken to make sure procurement and well timed fee to farmers,” state Agricultural Minister Kamal Patel stated. “If the current set-up continues with none interventions, these departments reeling beneath big money owed won’t be able to undertake procurement.”

He additionally stated that in instances of many crops, and pulses resembling moong, the state authorities procured round 1 lakh metric tons towards the stipulated procurement restrict of 95,000 metric tons set by the Centre.

The transfer was undertaken to make sure farmers get a good market worth. Nonetheless, the price of elevated procurement was borne by the state authorities by means of loans. However the dues are paid again to the state authorities solely as soon as the inventory is lifted from the godown.

A senior state official stated that in instances the place shares are usually not taken, refused, or rejected, the operation and different procurement value is solely borne by authorities businesses.

Till March 2021, the MP authorities had a debt of Rs 2.5 lakh crore in loans, which exceeded its funds of Rs 2.41 lakh crore. The federal government presently pays Rs 20,942 crore yearly as curiosity.

[ad_2]

Supply hyperlink