Chandigarh, Oct 1 (IANS): The Reserve Bank of India (RBI) sanctioned a cash credit limit of Rs.18,972 crore to food grain state Punjab where the paddy procurement process officially started on Thursday, an official said.

A Punjab government spokesman said that paddy procurement started in the state from Thursday, and the state government had set a target of 137 lakh tonnes of paddy this year as against 118 lakh tonnes procured last year.

The state government has set up 1,820 purchase centres across the state.

Food and Supplies Minister Adaish Pratap Singh Kairon said that all arrangements have been made to ensure smooth, hassle-free and quick procurement of paddy and ensure that farmers get timely payment for their produce.

"Farmers of the state would not be put to any inconvenience for the sale of their produce in the mandis. Good quality gunny bags with accurate weight would be ensured while packing the produce," he said.

Punjab, with a population of only 2.8 crore, contributes over 50 per cent of food grains (wheat and paddy) to the national kitty despite having just 1.54 percent of the country's geographical area.