Mann said that in the provisional cost sheet of Kharif Marketing Season of 2020-21, the Centre did not reimbursed the RDF.
Published Sep 21, 2023 | 7:24 PM ⚊ Updated Sep 21, 2023 | 7:24 PM
Punjab Chief Minister Bhagwant Mann. (Supplied)
Punjab Chief Minister Bhagwant Mann wrote to Governor Banwarilal Purohit on Thursday, 21 September, asking him to look into the case of the release of the Rural Development Fund (RDF) and restoration of the cuts imposed in the Market Development Fee (MDF), for public welfare.
Mann shot a letter to the Governor asking him to take up the issue with the Union government and the President to release the stalled RDF worth ₹5,637 crores.
It may be noted that the chief minister had regularly accused the Governor of not taking up the state’s issues with the Centre though the Governor always responded by saying he was never approached by the state government to take up the issues.
Following this, Mann sent a formal letter after the state received the Provisional Cost Sheet on Wednesday, wherein the head of RDF was deleted, and MDF was reduced from 3 percent to 2 percent for the next crop marketing season.
The same cuts were also announced in the previous season.
“You are already aware that Punjab is a major contributor of food grains to the central pool to ensure food security of the nation. The procurement of food grains is made by the state government for and on behalf of the Centre and all the food grains procured under the Central pool are handed over to the Centre as per their requirement,” Mann said in the letter.
“As such, the state government through its agencies is acting as an agent of the Centre. As a principle, all procurement cost incurred on procurement of food grains is to be reimbursed by the Centre’s Department of Food and Public Distribution”, he added.
The chief minister said that in the provisional cost sheet of Kharif Marketing Season (KMS) of 2020-21, the Centre did not reimburse the RDF for want of some clarification.
Subsequently, the Punjab government submitted the clarification as sought by the Department of Food and Public Distribution, and also amended the Punjab Rural Development Act (PRDA), 1987, as per the Centre/Food Corporation of India’s directions.
“Accordingly, the withheld amount of Rural Development Fee up to Rabi Marketing Season (RMS) 2021-22 was released by the Centre. But, from KMS 2021-22 onwards, the Department of Food and Public Distribution has stopped the allowance of Rural Development Fees despite making amendments in the PRDA,” Mann wrote.
“In this regard, it is requested that Rural Development Fees at 3 percent of MSP is payable to the Punjab Rural Development Board as per Section 7 of the PRDA. All the expenditures are made as per the provisions of the PRDA, and all the heads of expenditures are basically for rural, agricultural and related issues, which ultimately affect the agricultural growth and facilitate the farmers in increasing their livelihood, which leads to an increase in the efficiency of procurement centres,” added Mann.
The doing away of RDF has caused the state a loss of ₹3,326.4 crore. The state government has already moved the Supreme Court on the issue, and the case is listed for hearing next week. With the reduction in the MDF, the total loss to the state is ₹440 crore.
