FCI is also raising short term loans from banks upto a maximum limit of Rs. 30,000 crore. Recourse to these loans will be made by FCI as and when required.
Taken together these funds, there will be sufficient resources to manage Rabi procurement which has just started.
In 2015-16, original Food Subsidy allocation was Rs. 97,000 crore which was increased to Rs. 1,12,000 crore at RE stage. This helped to bring down the arrears of subsidy to Rs. 58,650 crore. During 2016-17 also the Government may consider additional food subsidy over and above budgetary provision, if required, towards the end of financial year to further bring down the subsidy arrears.
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