After moving SC, Mann to Gov: take up pending RDF issue with Prez, PM

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. “It is not able to continue with the uninterrupted developmental activities for the welfare of farmers and rural population of the state,” said the CM.

However, sources in the Raj Bhawan said that the letter did not mean anything in the light of the fact that the state government had already moved the Supreme Court. “They have moved the top court against the Centre? How will the Governor go to Centre and seek money? The Governor cannot bypass the SC. This letter is an eyewash and a late step,” said a source.

He said the CM probably has written the letter as the Governor had stated in some interviews that nobody from the
state government had contacted him for taking up matters concerning state with Centre.

The letter also comes amid reports of a thaw between the CM and the Raj Bhavan with Mann responding to the letters of the Governor. However, earlier this week, the Governor had in an interview stated that he was getting “flimsy” replies to his questions. He had quoted the instance of a question raised by him about selection of teachers for training in Singapore. The Governor stated that the CM’s reply said that they were answerable to 3.5 crore people of the state.

Meanwhile, in his letter, Mann said that food grains is procured by the state government for and on behalf of the Centre. All food grains 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 food grains is to be reimbursed by the department of food and public distribution, Government of India,” he wrote. However, he said that in the provisional cost sheet of kharif marketing season (KMS) of 2020-21, the Centre has not reimbursed RDF for want of some clarification. Subsequently, Mann said that after the discussions, the state government submitted all the clarification as sought by the Department of Food and Public Distribution, and also amended the Punjab Rural Development Act, 1987 as per the directions of Government of India. .

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 in spite 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.