Newsbytes
  • India
  • Business
  • World
  • Politics
  • Sports
  • Science
  • Entertainment
  • Auto
  • Lifestyle
  • Inspirational
  • Career
  • Bengaluru
  • Delhi
  • Mumbai
  • Videos
  • Find Cricket Statistics
Hindi
More
Newsbytes
Hindi
Newsbytes
User Placeholder

Hi,

Logout


India
Business
World
Politics
Sports
Science
Entertainment
Auto
Lifestyle
Inspirational
Career
Bengaluru
Delhi
Mumbai
Videos
Find Cricket Statistics

More Links
  • Videos

Download Android App

Follow us on
  • Facebook
  • Twitter
  • Linkedin
  • Youtube
 
Home / News / India News / Centre working to resolve Punjab foodgrain issue
  • India

    Centre working to resolve Punjab foodgrain issue

    Achin Garg
    Written by
    Achin Garg
    Mail
    Last updated on Apr 19, 2016, 11:19 am
    Centre working to resolve Punjab foodgrain issue
  • Minister of State for Finance, Jayant Sinha, has said that the government is working with banks, regulators and other agencies to resolve the issue of missing foodgrains in Punjab.

    Although he did not mention the value of the missing foodgrains, reports claim that Rs.20,000 crore worth of foodgrains is missing from state go-downs.

    The Punjab government, however, denies the claims of missing foodgrains.

  • In this article
    The process of foodgrains procurement Food credit exposure of banks RBI asks bank to provision for Punjab loans Banks petition RBI against provisioning Risk with zero-risk loans State-run banks to freeze lending to Punjab The missing foodgrains issue escalates Centre working to resolve Punjab foodgrain issue
  • Background

    The process of foodgrains procurement

    The process of foodgrains procurement
    Credits:
  • The RBI at the start of the financial year clears a cash credit limit (CCL) for lending by banks to Food Corporation of India (FCI).

    The FCI procures foodgrains from various procurement agencies of the state government which in turn procures grains from farmers.

    The state procurement agencies store the foodgrains on behalf of the FCI at their storage facilities.

  • Personal

    Food credit exposure of banks

  • Loans advanced to FCI (Food Corporation of India) are called as food credit by banks. The total food credit in the country stands at Rs.1.05 lakh crore against a total credit of Rs.72 lakh crores.

  • 15 Apr 2016

    RBI asks bank to provision for Punjab loans

    RBI asks bank to provision for Punjab loans
    Credits:
  • The Reserve Bank of India asked banks to declare their loans advanced to the Punjab government for foodgrain procurement as bad loans.

    The RBI's diktat came after it was discovered that the foodgrain stock in the warehouses in Punjab were insufficient to cover the previous loans.

    The loan amount at risk stood between Rs.12,000 crore to Rs.20,000 crore.

  • 16 Apr 2016

    Banks petition RBI against provisioning

    Banks petition RBI against provisioning
    Credits:
  • The RBI's directive for provisioning in the Jan-Mar'16 and Apr-Jun'16 quarter came as a rude shock to banks who are already facing challenges in adhering to RBI's instruction of clearing bad loans by Mar'17.

    The earnings of Q3 (Oct-Dec'15) already took a hit because of this cleanup exercise.

    Now, the lenders feared that new provisioning would severely hit the small banks.

  • Personal

    Risk with zero-risk loans

  • According to the banks, lending to state governments comes under 'zero-risk' loans and hence, provisioning on such loans not only questions the trust but also changes the way bankers look at loans to states or state-backed agencies.

  • 18 Apr 2016

    State-run banks to freeze lending to Punjab

    State-run banks to freeze lending to Punjab
    Credits:
  • State-run banks led by State Bank of India decided to stop lending to the Punjab government because of the mounting pressure of bad loans.

    The decision came after a meeting of the state-run banks.

    The move could severely impact Punjab's economy as the procurement season is about to begin and the state government, the biggest buyer, would not have funds for procurement from farmers.

  • 19 Apr 2016

    The missing foodgrains issue escalates

    The missing foodgrains issue escalates
    Credits:
  • The problem became more complicated as Punjab Chief Minister Prakash Singh Badal met Prime Minister Modi over the issue.

    Mr Badal asked for a cash credit limit of Rs.20,094 crores to ensure timely payment to the farmers in the coming season.

    With the Punjab assembly elections in 2017, the opposition parties criticised the government and asked for a court-monitored CAG audit.

  • 19 Apr 2016

    Centre working to resolve Punjab foodgrain issue

    Centre working to resolve Punjab foodgrain issue
  • Minister of State for Finance, Jayant Sinha, has said that the government is working with banks, regulators and other agencies to resolve the issue of missing foodgrains in Punjab.

    Although he did not mention the value of the missing foodgrains, reports claim that Rs.20,000 crore worth of foodgrains is missing from state go-downs.

    The Punjab government, however, denies the claims of missing foodgrains.

Latest News
  • Coronavirus: India's tally reaches 11.06 million with 15K+ new cases
    Coronavirus: India's tally reaches 11.06 million with 15K+ new cases
    India
  • 'Deadpool 3' the only R-rated movie being made: Kevin Feige
    'Deadpool 3' the only R-rated movie being made: Kevin Feige
    Entertainment
  • 2021 Royal Enfield Interceptor, Continental GT 650's color variants revealed
    2021 Royal Enfield Interceptor, Continental GT 650's color variants revealed
    Auto
  • NewsBytes Briefing: Investigation uncovers Facebook's pro ISIS move, and more
    NewsBytes Briefing: Investigation uncovers Facebook's pro ISIS move, and more
    Science
  • 'PUBG: New State' announced for iOS, Android; Unavailable in India
    'PUBG: New State' announced for iOS, Android; Unavailable in India
    Science
Related Timelines
  • Akalis leave NDA; Sukhbir urges parties to unite against Centre
    Akalis leave NDA; Sukhbir urges parties to unite against Centre
    Politics
  • After Harsimrat's resignation, now Dushyant Chautala faces heat, meets Khattar
    After Harsimrat's resignation, now Dushyant Chautala faces heat, meets Khattar
    Politics
  • Will Harsimrat Badal leave Modi's Cabinet over farm Bills?
    Will Harsimrat Badal leave Modi's Cabinet over farm Bills?
    Politics
Trending Topics
ISRO Vaccine Farmers Protest
Next News Article
Share
Cancel

Want to share it with your friends too?

Facebook Whatsapp Twitter Linkedin
Copied

Love India news?

Subscribe to stay updated.

India Thumbnail
India News Business News World News Politics News Sports News Science News Entertainment News Auto News Lifestyle News Inspirational News
Career News Bengaluru News Delhi News Mumbai News Bharti Airtel Mukesh Ambani Indian Premier League Samsung Virat Kohli Rohit Sharma
Cricket News Narendra Modi Facebook YouTube Hollywood News WhatsApp Bollywood News ISRO Rahul Gandhi Yoga
Honda Batman Football News BMW Vaccine Reliance Jio OPPO Amazon Food News, Healthy Recipes Royal Challengers Bangalore
Toyota Fashion Tips Farmers Protest Mercedes Isha Ambani India Vs England Cricket OnePlus Mobiles Android TV Smart TV Marvel Comics
Avengers Neha Kakkar Premier League Big Bang Theory
About Us Privacy Policy Terms & Conditions Contact Us News Reviews News Archive Topics Archive Find Cricket Statistics
Follow us on
Facebook Twitter Linkedin Youtube
All rights reserved © NewsBytes 2021