During a meeting with Union Food Minister Pralhad Joshi, Punjab CM Bhagwant Singh Mann requested immediate action to release over ₹9,000 crore pending with the Centre—₹7,737.27 crore under the Rural Development Fund (RDF) and ₹1,836.62 crore in Market Fees. He raised concerns over the non-release of RDF since the 2021–22 Kharif Marketing Season (KMS) and inadequate approval of Market Fees from the 2022–23 Rabi Marketing Season (RMS) onward.
CM Bhagwant Mann emphasized that RDF is crucial for enhancing agriculture and rural infrastructure, such as roads, mandis, storage, and automation. Despite aligning Punjab’s 1987 Rural Development Act with central guidelines, the funds remain unreleased, which he said is hampering rural development and straining the state’s Mandi and Rural Development Boards.
During a meeting with Union Food Minister Pralhad Joshi, Punjab CM Bhagwant Singh Mann requested immediate action to release over ₹9,000 crore pending with the Centre—₹7,737.27 crore under the Rural Development Fund (RDF) and ₹1,836.62 crore in Market Fees. He raised concerns over the non-release of RDF since the 2021–22 Kharif Marketing Season (KMS) and inadequate approval of Market Fees from the 2022–23 Rabi Marketing Season (RMS) onward.
CM Bhagwant Mann emphasized that RDF is crucial for enhancing agriculture and rural infrastructure, such as roads, mandis, storage, and automation. Despite aligning Punjab’s 1987 Rural Development Act with central guidelines, the funds remain unreleased, which he said is hampering rural development and straining the state’s Mandi and Rural Development Boards.
The Chief Minister also raised the persistent shortage of covered storage in Punjab over the past two years. Due to capacity issues during KMS 2023–24, the rice delivery deadline had to be extended till September 30, 2024. This created initial hesitation among millers to lift and store paddy, though the matter was resolved with support from both governments.
For KMS 2024–25, Mann said that out of 117 LMT rice to be delivered to FCI, only 107 LMT had been delivered by June 30, leaving 10 LMT still pending. He noted slow movement of rice from the state—only 80 LMT in the past year—while June’s target of 14 LMT saw only 8.5 LMT lifted. He urged for at least 15 LMT to be moved in July to meet the July 31 milling deadline, warning of possible unrest and disruption in the upcoming KMS 2025–26 procurement if delays persist.
CM Bhagwant Mann further recommended continuous rice allocation to bio-ethanol units, liberal lifting under OMSS, and expanded export channels to ease storage pressure. He estimated Punjab will need to store 145–150 LMT rice by end of KMS 2024–25, and an additional 120 LMT in KMS 2025–26, requiring monthly movement of 10–12 LMT. To meet this need, he called for a proactive approach to approve and hire more covered godowns, and suggested converting wheat godowns for rice storage—freeing up 7 LMT capacity—which could be adopted nationwide.
Addressing the issue of Aarthia Commission, Mann said that the Centre’s fixed rate of ₹45.88/qtl for paddy and ₹46.00/qtl for wheat since Kharif 2020–21 is outdated. Punjab’s marketing board bylaws require a 2.5% commission on MSP, translating to ₹59.72/qtl for the coming Kharif season. He urged a revision to prevent discontent among farmers in the sensitive border state.
Given the advancement of paddy transplantation, the CM urged the Centre to start paddy procurement from September 15 instead of October 1, ensuring smooth, moisture-free grain procurement and easing farmer burden.
Mann also called for the CMD of FCI to immediately convene a High-Level Committee meeting. He highlighted that while 46 LMT of covered capacity has been sanctioned under the 10-year PEG scheme, only 2.5 LMT has been awarded. An additional 9 LMT is under consideration with the State-Level Committee, and the state is awaiting FCI’s approval for tender relaxations.
Regarding deductions for Beyond Rejection Limit (BRL) stacks of Fortified Rice from KMS 2022–23, Mann explained that 472 stacks were rejected due to excessive nutrient levels but were later replaced and accepted. He requested a one-time refund of the storage charges deducted.
Lastly, the CM Bhagwant addressed a ₹1,200 crore annual gap in the Cash Credit Limit (CCL) due to inadequate reimbursement of Procurement Incidentals (PPI) by the Centre. He said this deficit hampers the functioning of the state’s procurement agencies and strains Punjab’s finances. Mann urged the Union Minister to rationalize and reimburse the PPIs promptly.
also raised the persistent shortage of covered storage in Punjab over the past two years. Due to capacity issues during KMS 2023–24, the rice delivery deadline had to be extended till September 30, 2024. This created initial hesitation among millers to lift and store paddy, though the matter was resolved with support from both governments.
For KMS 2024–25, Mann said that out of 117 LMT rice to be delivered to FCI, only 107 LMT had been delivered by June 30, leaving 10 LMT still pending. He noted slow movement of rice from the state—only 80 LMT in the past year—while June’s target of 14 LMT saw only 8.5 LMT lifted. He urged for at least 15 LMT to be moved in July to meet the July 31 milling deadline, warning of possible unrest and disruption in the upcoming KMS 2025–26 procurement if delays persist.
CM Bhagwant Mann further recommended continuous rice allocation to bio-ethanol units, liberal lifting under OMSS, and expanded export channels to ease storage pressure. He estimated Punjab will need to store 145–150 LMT rice by end of KMS 2024–25, and an additional 120 LMT in KMS 2025–26, requiring monthly movement of 10–12 LMT. To meet this need, he called for a proactive approach to approve and hire more covered godowns, and suggested converting wheat godowns for rice storage—freeing up 7 LMT capacity—which could be adopted nationwide.
Addressing the issue of Aarthia Commission, Mann said that the Centre’s fixed rate of ₹45.88/qtl for paddy and ₹46.00/qtl for wheat since Kharif 2020–21 is outdated. Punjab’s marketing board bylaws require a 2.5% commission on MSP, translating to ₹59.72/qtl for the coming Kharif season. He urged a revision to prevent discontent among farmers in the sensitive border state.
Given the advancement of paddy transplantation, the CM urged the Centre to start paddy procurement from September 15 instead of October 1, ensuring smooth, moisture-free grain procurement and easing farmer burden.
Mann also called for the CMD of FCI to immediately convene a High-Level Committee meeting. He highlighted that while 46 LMT of covered capacity has been sanctioned under the 10-year PEG scheme, only 2.5 LMT has been awarded. An additional 9 LMT is under consideration with the State-Level Committee, and the state is awaiting FCI’s approval for tender relaxations.
Regarding deductions for Beyond Rejection Limit (BRL) stacks of Fortified Rice from KMS 2022–23, Mann explained that 472 stacks were rejected due to excessive nutrient levels but were later replaced and accepted. He requested a one-time refund of the storage charges deducted.
Lastly, the CM Bhagwant addressed a ₹1,200 crore annual gap in the Cash Credit Limit (CCL) due to inadequate reimbursement of Procurement Incidentals (PPI) by the Centre. He said this deficit hampers the functioning of the state’s procurement agencies and strains Punjab’s finances. Mann urged the Union Minister to rationalize and reimburse the PPIs promptly.