NABARD lent 1000 crore rupees to HSWC for wheat procurement

The National Bank for Agriculture and Rural Development (NABARD) in the last week of April 2016 sanctioned a loan of 1000 crore rupees to Haryana State Warehousing Corporation (HSWC).

The loan is sanctioned for purchase of wheat during the ongoing rabi marketing season.

Haryana is one of the major contributors to the country's central pool of foodgrains. During the 2015-16 kharif season, NABARD had disbursed an amount of 500 crore rupees to the corporation for paddy procurement.

How  the loan will help HSWC?

• The loan will help the HSWC for payment of wheat purchased from farmers in various mandis/outlets in Haryana, in line with the government's resolve to pay the farmers' dues at the earliest.

• The objective of food grain procurement by the government agencies is to ensure that farmers get remunerative price for their produce and do not have to resort to distress sale and build buffer stocks.

• The Haryana Government has authorised five agencies, namely Food and Supplies Department, HAFED, Haryana Agro Industries Corporation, Food Corporation of India and HSWC to procure wheat at minimum support price during the 2016-17 marketing season.

• The Haryana Food and Supplies Department expects around 75 lakh metric tonnes of wheat in the current season.

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