Cash crunch hits paddy procurement

Hyderabad: The acute cash crunch occasioned by demonetisation of Rs 500 and Rs 1,000 currency notes has virtually crippled the Civil Supplies Corporation with regard to paddy procurement.

The bulk of the paddy procurement process has been badly hit, with the corporation not being in a position to open adequate paddy procurement centres (PPCs) across the State.

The number of PPCs proposed by the administration being 2,180 throughout the State, only 1,260 centres could be opened till date.

According to official sources, procurement by the corporation during the present kharif season has dipped by over 50 percent.

Out of the proposed 18,26, 651 metric tonnes, the corporation has so far procured only 5,11,327 metric tonnes.

The sources said that though the corporation had planned to open paddy procurement centres (PPCs) at Adilabad, Asifabad, Mancherial, Jagtial, Peddapally and Gadwal districts, during November so far it could not do so.

Although officials offer to make payment to farmers through online transfers to farmers’ bank accounts, the latter are not in favour of it.

The farmers say that, given present restrictions on withdrawals, they would not be able to survive if the payments are transferred to their respective bank accounts.

Sources say that unless the Centre takes speedy measures the situation would only worsen.