Punjab CM Bhagwant Mann urges Centre to give 3% of MSP as development fee

Tribune News Service

Sanjeev Singh Bariana

Chandigarh, January 20

In a fresh communication to Union Minister for Food and Public Distribution Piyush Goyal, Chief Minister Bhagwant Mann is seeking the Rural Development Fee (RDF) and the Market Development Fee (MDF) at the rate of 3 per cent of the Minimum Support Price (MSP) of the wheat and paddy crop from the Centre.

The state receives approximately Rs 3,600 crore annually on the account of these two fees. The state stands to lose crores annually going by the demi-official letter from the Centre to reduce the statutory charges to 2 per cent of the MSP. Punjab has not received approximately Rs 3,000 crore from the Centre on this account.

According to the state government, “Any reduction at this stage will adversely affect the rural infrastructure and economy. Further the Punjab State Agricultural Marketing Board and Punjab Rural Development Board will not be able to clear the loan and liabilities created for development of the rural infrastructure in the past.”

The state government has pointed out that “the RDF at the rate of three cent is payable to the Punjab Rural Development Board as per the Punjab Rural Development Act, 1987. The fund is used for rural areas, agriculture and related issues which ultimately affect the agriculture growth and facilitate farmers in increasing their livelihood”.

Government also said that the Market Development Fees is payable to the Punjab State Agricultural Marketing Board at the rate of three per cent within three days of purchase and the cess is used for welfare of farmers and development of rural infrastructure, including development of rural mandis and link roads.

It is also worth mentioning that the state government has defaulted on repayment of a Rs 600 crore instalment for a loan taken against a roll out for the farm waiver announced by former Chief Minister Capt Amarinder Singh. A loan of Rs 6,000 crores was taken against the Mandi Development Fee (MDF) and Rural Development Fund (RDF) in 2017.

In wake of objections by the Centre on the state expenditure out of the RDF for repayment of the state loans, the current government has said to have made the necessary amendment in Punjab Rural Development Act as per the directions of Department of Food and Public Distribution (DFPD).

According to the amendment, the RDF shall be spent for the construction of approach roads to mandis and procurement centres and street lights, construction of new and development of old and other mandi-related works only.

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