Demands Expedited Movement of Existing Rice from the State
Advocates Proactive Approach for approval by FCI for Hiring of Covered Godowns
Seeks Upward Revision in Aarthia Commission
Punjab Newsline, New Delhi/Chandigarh–
Punjab Chief Minister Bhagwant Singh Mann on Wednesday sought the kind intervention of Union Food Minister Pralhad Joshi for the release of the state’s pending share of over ₹9,000 crore related to the Rural Development Fund (RDF) and Market Fees.
During a meeting at the Minister’s residence, the Chief Minister raised the issue of non-allowance of RDF since KMS 2021–22 and insufficient allowance of Market Fees since RMS 2022–23.
The Chief Minister emphasized 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 & Public Distribution (DFPD) guidelines, the RDF has not been released since KMS 2021–22. Bhagwant Singh Mann stated that ₹7,737.27 crore under RDF and ₹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 that 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, Bhagwant Singh Mann urged the Union Minister to release the pending funds at the earliest in the larger public interest.
Chief Minister also highlighted the persistent shortage of covered storage space in the state over the past two years. During KMS 2023–24, he said that the shortage led to the extension of the delivery period for milled rice up to September 30, 2024. Bhagwant Singh Mann said that 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 state and central governments.
The Chief Minister said that for KMS 2024–25, out of 117 LMT (lakh metric tonnes) of rice to be delivered to FCI, only around 107 LMT had been delivered by June 30, 2025, with 10 LMT still pending. He said that Only 80 LMT of rice has been moved out of the state in the last 12 months, averaging 6.67 LMT per month. Bhagwant Singh Mann said that Although 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 2025 to complete milling by July 31. He said that Delays may trigger unrest among millers and hinder paddy procurement for KMS 2025–26, . Considering the storage crunch, Bhagwant Singh Mann requested continued allocation of rice to Bio-Ethanol Manufacturing Units 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 KMS 2024–25 and to make room for the additional 120 LMT expected in KMS 2025–26, Punjab needs a regular movement of 10–12 LMT per month to ensure at least 40 LMT of available space by December 2025. To optimize storage, he urged the Union Minister to adopt a proactive approach to identifying, approving, and hiring covered godown. Bhagwant Singh Mann said that a strategy of converting covered godowns of wheat to rice needs to be implemented . This strategy could free up 7 LMT of capacity for rice storage in KMS 2025–26 adding that this model be adopted nationwide to mitigate space shortages.
Raising the issue of Aarthia Commission, the Chief Minister said that the Union Government had de-linked the commission from MSP in Kharif 2020–21, fixing it at ₹45.88/qtl for paddy and ₹46.00/qtl for wheat. He said that These rates have remained unchanged, although Punjab Agriculture Marketing Board bylaws stipulate a 2.5% commission on MSP, which translates to ₹59.72/qtl for the upcoming Kharif season. Bhagwant Singh Mann urged the Union Minister to revise the commission to prevent hardships for farmers and avert potential unrest in this sensitive border state.
The Chief Minister also said that as the state government had advanced the dates of paddy transplantation in the state so the Union government must prepone the procurement of paddy by 15 days. He said that now the procurement of paddy must start from September 15 so that the farmer of the state can sell their in a smooth and hassle free manner. Bhagwant Singh Mann said that this will enable the farmers to bring moisture free grains in the Mandis thereby ensuring their smooth procurement.
The Chief Minister also called for immediate intervention from CMD, FCI, to convene a meeting of the High-Level Committee (HLC), noting that while 46 LMT of covered storage capacity has been sanctioned under the 10-year PEG scheme, only 2.5 LMT has been awarded.Bhagwant Singh Mann said that Agenda for another 9 LMT is being placed before the State-Level Committee (SLC), and the state has requested relaxation in certain tender terms, which is also awaiting FCI’s decision.
Addressing the issue of storage charges deduction for Beyond Rejection Limit (BRL) stacks of Fortified Rice (FR) from KMS 2022–23, the Chief Minister explained that 472 stacks were rejected due to higher nutrient levels in FRK. As these were exceptional cases and the stacks have since been replaced and accepted by FCI, Bhagwant Singh Mann requested a one-time refund of the deducted storage charges. On procurement finances, he highlighted a gap of ₹1,200 crore annually in the Cash Credit Limit (CCL) due to less reimbursement of Procurement Incidentals (PPI) by the Union Government/FCI.
The Chief Minister said that These incidentals—apart from MSP and statutory charges—are essential for procurement operations conducted by the state’s four procurement agencies. He said that The shortfall puts additional pressure on the already-stressed state exchequer. Bhagwant Singh Mann urged the Union Minister to resolve the issue and rationalize PPIs at the earliest.