Key Points

Punjab CM Bhagwant Mann met Union Minister Pralhad Joshi to push for the release of Rs 9,000 crore in pending rural funds. He stressed that delayed RDF payments have crippled infrastructure projects and loan repayments. Mann also flagged storage shortages and outdated commission rates affecting farmers. The state seeks urgent central intervention to revive Punjab’s rural economy.

Key Points: Punjab CM Mann Seeks Rs 9000 Cr Rural Fund Release from Centre

  • Mann highlights Rs 7,737 crore RDF and Rs 1,836 crore Market Fees pending
  • Punjab’s rural roads and mandi infrastructure hit by fund delays
  • Storage shortage extended rice delivery deadlines in 2023-24
  • Aarthia Commission rates unchanged despite inflation hurting farmers
3 min read

Punjab CM meets Pralhad Joshi, seeks release of state's pending share in Rural Development Fund

Bhagwant Mann urges Union Minister Pralhad Joshi to release Punjab’s pending Rs 9,000 crore RDF and Market Fees for rural development.

"Non-reimbursement has severely impacted rural infrastructure and economy – Bhagwant Singh Mann"

New Delhi, July 16

Punjab Chief Minister Bhagwant Singh Mann on Wednesday sought the intervention of Union Food Minister Pralhad Joshi for the release of the state's pending share of over Rs 9,000 crore related to the Rural Development Fund (RDF) and Market Fees.

According to a Punjab government release, during a meeting at the Minister's residence, the Chief Minister raised the issue of non-allowance of RDF since KMS 2021-22 and insufficient allowance of Market Fees since RMS 2022-23.

The Chief Minister emphasised that the purpose of RDF is to promote agriculture and rural infrastructure, including the development of rural roads, marketing infrastructure, storage facilities in mandis, and automation and mechanisation of mandis.

He said that despite amending the Punjab Rural Development Act, 1987, in accordance with the Department of Food & Public Distribution (DFPD) guidelines, the RDF has not been released since KMS 2021-22.

Bhagwant Singh Mann stated that Rs 7,737.27 crore under RDF and Rs 1,836.62 crore under Market Fees are still pending from the Union Government.

The Chief Minister noted that this non-reimbursement has severely impacted the development and maintenance of rural infrastructure, as well as the rural economy. He said that the Mandi Board and Rural Development Board are struggling to repay loans, maintain existing infrastructure, and create new facilities for rural development. In light of this, Bhagwant Singh Mann urged the Union Minister to release the pending funds at the earliest in the larger public interest.

He also highlighted the persistent shortage of covered storage space in the state over the past two years, the release said. During KMS 2023-24, he stated that the shortage resulted in the extension of the delivery period for milled rice to September 30, 2024. Bhagwant Singh Mann stated that this caused concern among millers during the last Kharif season, initially making them reluctant to lift and store paddy, but the issue was later resolved through cooperation between the state and central governments.

Raising the issue of the Aarthia Commission, the Chief Minister said that the Union Government had de-linked the commission from MSP in Kharif 2020-21, fixing it at Rs 45.88/qtl for paddy and Rs 46.00/qtl for wheat. He said that these rates have remained unchanged, although the Punjab Agriculture Marketing Board bylaws stipulate a 2.5% commission on MSP, which translates to ₹59.72/qtl for the upcoming Kharif season. Bhagwant Singh Mann urged the Union Minister to revise the commission to prevent hardships for farmers and avert potential unrest in this sensitive border state.

The Chief Minister also called for immediate intervention from CMD, FCI, to convene a meeting of the High-Level Committee (HLC), noting that while 46 LMT of covered storage capacity has been sanctioned under the 10-year PEG scheme, only 2.5 LMT has been awarded.

Bhagwant Singh Mann stated that the agenda for another 9 LMT is being presented to the State-Level Committee (SLC), and the state has requested relaxation in certain tender terms, which is also pending FCI's decision.

Addressing the issue of storage charges deduction for Beyond Rejection Limit (BRL) stacks of Fortified Rice (FR) from KMS 2022-23, the Chief Minister explained that 472 stacks were rejected due to higher nutrient levels in FRK. As these were exceptional cases and the stacks have since been replaced and accepted by FCI, Bhagwant Singh Mann requested a one-time refund of the storage charges that were deducted.

- ANI

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Reader Comments

S
Sarah B
As someone working in rural development, I can confirm the infrastructure is crumbling. The storage facility issue is particularly worrying - how can we expect food security when we can't even store grains properly?
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Arjun K
While I support the CM's demands, I wish he had acted sooner. Two years is too long to wait for such critical funds. Our mandis look like they're from the 1980s while other states are getting modern facilities.
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Priya S
The Aarthia Commission issue is hurting small farmers the most. ₹45/qtl when it should be ₹59 is daylight robbery! Centre must revise this immediately. Punjab feeds the nation but gets step-motherly treatment 😡
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Vikram M
Good to see state and centre cooperating on the paddy storage issue. But why does it always take a crisis for things to move? We need systemic changes, not last-minute fixes.
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Kavya N
As a farmer's daughter, I know how crucial these funds are. The storage shortage means crops get spoiled and loans pile up. Government should treat this as urgent as defense spending - food security is national security!

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