India News | Punjab CM Urges Governor Purohit to Take Up Pending RDF Issue with President, Prime Minister

Chandigarh, Sep 21 (PTI) Punjab Chief Minister Bhagwant Mann on Thursday urged Governor Banwarilal Purohit to take up the issue of pending Rural Development Fund (RDF) amounting to Rs 5,637.40 crore with the President and the Prime Minister.

Mann, in a letter to the governor, said his government has taken up the matter with the Centre and even at the level of the prime minister.

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However, the amount of RDF worth Rs 5,637.40 crore has not yet been released by the Centre, he said.

Mann pointed out that because of the non-release of pending RDF, the mandi board was unable to repay its existing loans and cannot carry out development activities for farmers.

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Foodgrains is procured by the state government for and on behalf of the Centre. All foodgrains are procured under the central pool.

As such, the state government through its agencies is acting as an agent of the government of India, he said.

"As a principle, all cost incurred on procurement of foodgrains is to be reimbursed by the department of food and public distribution, Government of India," he wrote.

For the Kharif Marketing Season 2020-21, the Centre did not reimburse RDF for want of some clarification.

After discussions, the state government submitted all clarifications as sought by the Centre, and also amended the Punjab Rural Development Act, 1987 as per the directions of Centre, Mann said.

Accordingly, the withheld RDF amount up to Rabi marketing season 2021-22 was released by the Centre.

However, he said from Kharif Marketing Season 2021-22 onwards, the Centre has stopped allowance of RDF inspite of making amendments in the Punjab Rural Development Act, 1987.

RDF of 3 per cent is payable to the Punjab Rural Development Board as per the Punjab Rural Development Act (PRDA) 1987, he noted.

"All expenditures are made as per provisions of the PRDA, 1987 and all heads of expenditures are basically for rural, agriculture and related issues," he said.

Further, he said the Centre from Rabi marketing season India 2022-23 allowed Market Development Fund (MDF) of 2 per cent as against 3 per cent, causing a loss of Rs 175 crore.

For the wheat season-2023-24, the Centre reduced the MDF from 3 to 2 per cent, which has resulted in an additional loss of Rs 265 crore, while the total losses went up to Rs 440 crore for the two seasons, according to Mann.

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