In a significant development amidst an ongoing political standoff between Punjab Chief Minister Bhagwant Mann and Governor Banwarilal Purohit, the former has written a compelling letter to the latter urging him to intervene and bring the issue of the pending Rural Development Fund (RDF), worth a staggering Rs 5637.4 crore, to the attention of the President of India and the Prime Minister.

The rift between Mann and Purohit has escalated in recent weeks, touching on a range of issues including governance conflicts. However, the focus of Mann's latest letter is the critical matter of the RDF, which has become a significant bone of contention.

In his letter, Mann began by underscoring Punjab's pivotal role as a major contributor of food grains to the central pool, ensuring the nation's food security. He highlighted that the procurement of these food grains is carried out by the State Government on behalf of the Government of India, effectively acting as an agent for the Central Government.

Mann emphasized that the cost incurred in the procurement process is supposed to be reimbursed by the Department of Food and Public Distribution, Government of India. However, he lamented that the Rural Development Fund was withheld for the Kharif Marketing Season of 2020-21 due to lack of clarification. Subsequently, the Punjab Government provided all the required clarifications and amended the Punjab Rural Development Act, 1987, in accordance with the directives of the Government of India and the Food Corporation of India (FCI).

While the withheld RDF up to RMS 2021-22 was eventually released, Mann expressed his disappointment that the allowance of Rural Development Fees was discontinued from KMS 2021-22 onwards, despite the necessary amendments. According to Mann, RDF at three per cent of Minimum Support Price (MSP) are payable to the Punjab Rural Development Board under the Punjab Rural Development Act, 1987.

Mann argued that all expenditures made under this Act are directed toward rural, agricultural, and related issues, ultimately benefiting agricultural growth and supporting farmers in improving their livelihoods. He pointed out that this also enhances the efficiency of procurement centers.

The Chief Minister said that the Government of India, while issuing Provisional Cost Sheet for RMS 2022-23, has allowed Market Development Fees (MDF) at the rate of two per cent, and retained one per cent causing loss of Rs 175 crores.

He said that the GOI, while issuing a provisional cost sheet for Wheat season 2023-24, also reduced the MDF from three to two per cent. “This has resulted into an additional loss of Rs 265 crores making it a total loss of Rs 440 crores (Rs 175 crores + Rs 265 crores) to the State for these two seasons,” he added.

Highlighting the critical consequences of the non-release of these levies, Mann said that it is adversely affecting rural infrastructure and the economy. The Mandi Board and Rural Development Board are now unable to repay loans and liabilities accumulated for rural infrastructure development, leading to disruptions in ongoing developmental activities benefiting farmers and the rural population.

Mann concluded by urging Governor Purohit to take up the matter directly with the President and Prime Minister of India to expedite the release of the pending RDF of Rs 5637.4 crore, emphasizing that the delay is hampering vital rural development initiatives and impacting the welfare of the state's farmers and rural communities.