APNEWS
Andhra Pradesh Markfed Secures ₹1,800 Crore Working‑Capital Loan to Boost Paddy Procurement and Seed Distribution
The Andhra Pradesh cabinet has cleared a ₹1,800 crore working‑capital loan from the National Cooperative Development Corporation for AP Markfed. The funds will be split between the state civil supplies corporation for paddy procurement and the seeds corporation for kharif seed operations, aiming to smooth the agricultural supply chain.
By Open Vaartha Desk ·
TL;DR
AP Markfed gets a ₹1,800 crore NCDC loan to streamline paddy procurement and kharif seed distribution.
Key points
- ₹1,800 crore working‑capital loan approved for AP Markfed
- ₹1,600 crore allocated to AP Civil Supplies Corp for paddy procurement and PDS
- ₹200 crore earmarked for AP Seeds Corp for kharif seed collection and distribution
- Loan granted by NCDC with a concessional interest rate
- Aim: reduce delays, lower farmer transaction costs, and boost incomes
<p>Andhra Pradesh’s agricultural marketing arm, AP Markfed, received cabinet approval on July 9, 2024 for a ₹1,800 crore working‑capital loan from the National Cooperative Development Corporation (NCDC). The loan is part of a broader state effort to stabilise farm‑gate prices and ensure timely distribution of essential inputs, especially after erratic monsoon patterns disrupted last year’s harvest.</p><p>Under the agreement, ₹1,600 crore will be transferred as an inter‑corporate loan to the AP Civil Supplies Corporation, earmarked for paddy procurement and Public Distribution System (PDS) requirements. The remaining ₹200 crore will go to the AP Seeds Corporation to finance kharif seed collection, processing, and distribution, helping farmers access quality seeds ahead of the upcoming sowing season.</p><p>State officials anticipate that the infusion of capital will reduce procurement delays, lower transaction costs for farmers, and improve the efficiency of grain storage and distribution. By guaranteeing funds for both procurement and seed supply, the government aims to curb post‑harvest losses and boost farmer incomes, particularly for smallholders who rely on timely cash flow.</p><p>NCDC, a central agency that supports cooperative credit, has previously extended similar loans to other state marketing bodies, but the ₹1,800 crore package marks the largest single disbursement for Andhra Pradesh to date. The loan carries a concessional interest rate and is backed by a state guarantee, reflecting the government’s confidence in the cooperative model to drive agrarian growth.</p><p>Analysts note that while the loan strengthens Markfed’s balance sheet, its success will hinge on transparent fund utilization and robust monitoring mechanisms. Any misallocation could strain the state’s fiscal position, but the coordinated approach between Markfed, the civil supplies corporation, and the seeds corporation is seen as a proactive step toward a more resilient agricultural supply chain.</p>