Punjab CM seeks release of Rs 9,000 crore of Rural Development Fund

New Delhi July 16 Punjab Chief Minister Bhagwant Mann on Wednesday sought the intervention of Union Food Minister Pralhad Joshi for the release of the state’s pending share of over Rs 9,000 crore related to the Rural Development Fund (RDF) and Market Fees.

During a meeting at the Union Minister’s residence, the Punjab CM raised the issue of non-allowance of RDF since 2021-22 and insufficient allowance of market fees since 2022-23.

The Chief Minister emphasised that the purpose of RDF is to promote agriculture and rural infrastructure, including the development of rural roads, marketing infrastructure, storage facilities in mandis, and automation and mechanization of mandis. He said that Despite amending the Punjab Rural Development Act, 1987, in accordance with the Department of Food and Public Distribution (DFPD) guidelines, the RDF has not been released since 2021-22.

He said Rs 7,737.27 crore under RDF and Rs 1,836.62 crore under Market Fees are still pending from the Union government.

The Chief Minister noted that this non-reimbursement has severely impacted the development and maintenance of rural infrastructure and the rural economy.

He said the Mandi Board and Rural Development Board are struggling to repay loans, maintain existing infrastructure, and create new facilities for rural development.

In light of this, Mann urged the Union Minister to release the pending funds at the earliest in the larger public interest.

The Chief Minister also highlighted the persistent shortage of covered storage space in the state over the past two years.

During 2023-24 he said the shortage led to the extension of the delivery period for milled rice up to September 30, 2024.

Mann said this caused concern among millers during the last Kharif season, making them initially reluctant to lift and store paddy adding that the issue was later resolved with the cooperation of both the state and Central governments.

The Chief Minister said that for 2024-25, out of 117 LMT (lakh metric tonnes) of rice to be delivered to the FCI, only around 107 LMT had been delivered by June 30, 2025, with 10 LMT still pending.

He said only 80 LMT of rice has been moved out of the state in the past 12 months, averaging 6.67 LMT per month. Mann said that although the FCI had planned to move 14 LMT in June 2025, only 8.5 LMT was actually lifted.

The Chief Minister stressed the need for the movement of at least 15 LMT of rice in July to complete milling by July 31.

He said delays may trigger unrest among millers and hinder paddy procurement for 2025-26. Considering the storage crunch, Mann requested continued allocation of rice to bio-ethanol manufacturing ynits at reasonable prices, liberal lifting under OMSS, rice exports, and other channels.

The Chief Minister pointed out that the state is expected to store around 145-150 LMT of rice by the end of 2024-25 and to make room for the additional 120 LMT expected in 2025-26, Punjab needs a regular movement of 10-12 LMT per month to ensure at least 40 LMT of available space by December.

To optimise storage, he urged the Union Minister to adopt a proactive approach to identifying, approving, and hiring covered godown. Mann said that a strategy of converting covered godowns of wheat to rice needs to be implemented. This strategy could free up seven LMT of capacity for rice storage in 2025-26, adding that this model be adopted nationwide to mitigate space shortages.

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