New Delhi, September 30
Punjab Chief Minister Bhagwant Singh Mann met Union Home Minister Amit Shah at his residence in New Delhi to request a special financial package for Punjab, reeling from unprecedented floods that caused extensive damage. Mann also sought revisions to compensation norms under the State Disaster Response Fund (SDRF) and National Disaster Response Fund (NDRF), and relaxations in grain procurement for the Kharif Marketing Season (KMS) 2025-26.
Flood Damage and Relief Package
CM Mann highlighted the catastrophic impact of recent floods, among the worst in decades, affecting 20 lakh people across 2,614 villages, displacing 6.87 lakh individuals, and causing damages estimated at ₹13,832 crore. The disaster destroyed 4.8 lakh acres of crops, damaged 17,000 houses, affected 2.5 lakh livestock, and impacted 4,657 km of rural roads, 485 bridges, 1,417 culverts, and 190 mandis. He deemed the Centre’s announced relief of ₹1,600 crore inadequate and urged a special package to address losses in agriculture, infrastructure, health, education, and livelihoods.
Mann criticized the current SDRF/NDRF norms, particularly the ₹6,800 per acre input subsidy for crop losses above 33%, as insufficient given that crops were near harvest. He proposed increasing compensation to ₹50,000 per acre. To support flood victims, Punjab has enhanced compensation from its budget: ₹10,000 per acre for 26-33% crop loss (up from ₹2,000), ₹10,000 per acre for 33-75% loss (up from ₹6,800), and ₹20,000 per acre for 75-100% loss (up from ₹6,800), with the state contributing ₹14,900 per acre—the highest in India. For housing, Mann requested doubling compensation for fully/severely damaged houses to ₹2.4 lakh (from ₹1.2 lakh), ₹50,000 for partially damaged pucca houses (from ₹6,500), and ₹10,000 for kutcha houses (from ₹4,000). For cattle sheds, he proposed ₹10,000 (up from ₹3,000).
Grain Procurement Relaxations
Mann sought relaxations in paddy procurement specifications for KMS 2025-26, particularly for heavily affected districts like Gurdaspur, Amritsar, Fazilka, Kapurthala, and Ferozepur. He urged the Department of Food & Public Distribution to prioritize these relaxations to prevent further hardship for farmers already impacted by floods, which submerged 1,900 villages and damaged 4 lakh acres of crops.
Flood Protection and Border Infrastructure
The CM raised concerns about inadequate funding for flood protection along the international border, where rivers like the Ravi and Satluj frequently change course, causing erosion and threatening Border Security Force (BSF) outposts. A ₹175.96 crore Detailed Project Report was submitted to the Central Water Commission (CWC) and National Disaster Management Authority (NDMA), but funds remain unreleased despite multiple meetings. Mann urged Shah to expedite the release to protect border infrastructure.
He also requested shifting the border security fence closer to the international border, where feasible, to reduce difficulties for farmers cultivating land between the fence and the zero line. This would alleviate BSF workload and reduce compensation costs, aligning with international norms allowing construction beyond 150 meters of the zero line.
watch…..Punjab’s Call for Support: Urging the 16th Finance Commission
Rural Development Fund and Market Fees
Mann highlighted the non-reimbursement of ₹11,297 crore in Rural Development Fund (RDF) and Market Fees, despite provisions under the Punjab Rural Development Act, 1987, and Punjab Agricultural Produce Marketing Act, 1961. These funds are critical for rural infrastructure, including roads, markets, storage, and mandi modernization. Despite Punjab amending the 1987 Act as per central guidelines, RDF has not been released since KMS 2021-22, exacerbating the state’s financial crisis and hindering rural development.
Arhtiya Commission
The CM raised concerns over the stagnant Arhtiya Commission, capped at ₹46/quintal for wheat and ₹45.88/quintal for paddy since 2019-20, despite the Punjab Agricultural Produce Marketing Act mandating 2.5% of MSP (₹59.73/quintal for 2025-26). This discrepancy has caused unrest among arhtiyas, risking disruptions in procurement. Mann urged Shah to expedite revision of commission rates.
Storage and Rice Movement
With Punjab’s covered storage capacity at 180 LMT, currently holding 171 LMT (140 LMT rice, 31 LMT wheat), only 9 LMT is available for KMS 2025-26 rice deliveries starting December 2025. Mann requested monthly movement of 10-12 LMT rice until June 2026 to ensure timely milling of 117-120 LMT rice. He also sought approval of viable rates for 60 LMT covered godowns under the PEG Scheme to phase out open storage.
DAP Fertilizer Supply
For the Rabi 2025-26 season, Mann highlighted the need for 5 lakh MT of DAP fertilizer for 35 lakh hectares of wheat cultivation. Persistent DAP shortages, especially during the Kharif season, threaten wheat, potato, and other crop yields, impacting national food security as Punjab contributes nearly 50% of FCI’s buffer stocks. He requested maximum and timely DAP allocations for August-September.
Infrastructure Project
Mann sought immediate clearance of the General Arrangement Drawing (GAD) for a ₹54 crore Rail Over Bridge (ROB) at level crossing no. 62-A, Sheron distributor, Rajpura-Bathinda line, Dhuri, Sangrur. Fully funded by Punjab, this project will enhance road safety, traffic flow, and regional connectivity but is stalled due to pending railway approval.
Outcome
The meeting underscored Punjab’s critical needs, with CM Mann urging Shah’s intervention to address flood relief, border security, and fiscal challenges. The discussions aimed to secure support for Punjab’s farmers, infrastructure, and economic stability.

