Punjab CM Urges Union Food Minister for Immediate Release of Over ₹9,000 Crore in RDF and Market Fees
Seeks Faster Rice Movement, Approval for Covered Godowns, and Revision of Aarthia Commission
New Delhi/Chandigarh, July 16
Punjab Chief Minister Bhagwant Mann met Union Food Minister Pralhad Joshi on Wednesday, seeking urgent intervention to release the state’s pending share of over ₹9,000 crore in Rural Development Fund (RDF) and Market Fees, alongside addressing critical issues related to rice movement, storage, and aarthia commission.
During the meeting at the Minister’s residence, the Chief Minister highlighted the non-release of RDF since the Kharif Marketing Season (KMS) 2021–22 and inadequate Market Fee allocations since the Rabi Marketing Season (RMS) 2022–23. He emphasized that RDF is vital for promoting agriculture and rural infrastructure, including rural roads, marketing facilities, storage in mandis, and automation. Despite amendments to the Punjab Rural Development Act, 1987, aligning with Department of Food & Public Distribution (DFPD) guidelines, ₹7,737.27 crore in RDF and ₹1,836.62 crore in Market Fees remain pending from the Union Government.
Mann noted that the non-reimbursement has severely hampered rural infrastructure development and the rural economy, straining the Punjab Mandi Board and Rural Development Board’s ability to repay loans, maintain infrastructure, and develop new facilities. He urged the Union Minister to release these funds promptly in the public interest.
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The Chief Minister raised concerns about the persistent shortage of covered storage space over the past two years. During KMS 2023–24, this led to an extended rice delivery period until September 30, 2024, causing initial reluctance among millers to lift and store paddy, though the issue was later resolved with state and central cooperation. For KMS 2024–25, out of 117 lakh metric tonnes (LMT) of rice to be delivered to the Food Corporation of India (FCI), only 107 LMT had been delivered by June 30, 2025, with 10 LMT pending. Over the past 12 months, only 80 LMT of rice was moved out of Punjab, averaging 6.67 LMT per month, and despite FCI’s plan to move 14 LMT in June 2025, only 8.5 LMT was lifted.
Mann stressed the need to move at least 15 LMT of rice in July 2025 to complete milling by July 31, warning that delays could spark unrest among millers and disrupt paddy procurement for KMS 2025–26. To address storage constraints, he requested continued rice allocation to Bio-Ethanol Manufacturing Units at reasonable prices, liberal lifting under the Open Market Sale Scheme (OMSS), and support for rice exports. With Punjab expected to store 145–150 LMT of rice by the end of KMS 2024–25 and an additional 120 LMT in KMS 2025–26, Mann urged a monthly movement of 10–12 LMT to ensure 40 LMT of storage space by December 2025. He advocated for a proactive FCI approach to approving and hiring covered godowns and proposed converting wheat godowns to rice storage to free up 7 LMT of capacity for KMS 2025–26, a model he suggested for nationwide adoption.
On the aarthia commission, Mann noted that the Union Government de-linked it from the Minimum Support Price (MSP) in Kharif 2020–21, fixing it at ₹45.88/quintal for paddy and ₹46.00/quintal for wheat. Despite Punjab Agriculture Marketing Board bylaws stipulating a 2.5% commission on MSP (₹59.72/quintal for the upcoming Kharif season), these rates remain unchanged, causing financial strain for farmers. Mann urged an upward revision to prevent unrest in the sensitive border state.
Mann also called for advancing paddy procurement by 15 days to September 15, aligning with the state’s earlier paddy transplantation schedule, to ensure smooth, moisture-free grain procurement. He requested the FCI Chairman to convene a High-Level Committee (HLC) meeting, noting that while 46 LMT of covered storage capacity was sanctioned under the 10-year PEG scheme, only 2.5 LMT has been awarded. An agenda for 9 LMT is under consideration by the State-Level Committee (SLC), with Punjab seeking relaxation in tender terms, pending FCI’s decision.
Addressing storage charge deductions for Beyond Rejection Limit (BRL) stacks of Fortified Rice (FR) from KMS 2022–23, Mann explained that 472 stacks were rejected due to higher nutrient levels in Fortified Rice Kernels (FRK). As these stacks have been replaced and accepted by FCI, he requested a one-time refund of the deducted charges. On procurement finances, Mann highlighted a ₹1,200 crore annual shortfall in the Cash Credit Limit (CCL) due to inadequate reimbursement of Procurement Incidentals (PPI) by the Union Government/FCI, which burdens the state’s exchequer. He urged the Union Minister to rationalize PPIs and resolve the issue promptly
