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Punjab CM writes to Piyush Goyal seeking RDF at 3% of MSP

Says RDF at 1% of the MSP was contrary to the statutory provision as per Section 5 of the Punjab Rural Development Act

Published on: Apr 5, 2021, 01:03:12 IST
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Chief minister Capt Amarinder Singh has written to Union minister for consumer affairs, food and public distribution seeking rural development fund (RDF) at 3% of the minimum support price ( 54.64/quintal) for the kharif (paddy) season 2020-21, instead of 1%, as per the revised provisional cost sheet issued by the department of food and public distribution.

Punjab CM writes to Piyush Goyal seeking RDF at 3% of MSP
Punjab CM writes to Piyush Goyal seeking RDF at 3% of MSP

Pointing out that the RDF at 1% of the minimum support price (MSP) was contrary to the statutory provision as per Section 5 of the Punjab Rural Development Act, 1987, the CM, in his letter to Goyal, said the notified RDF was also in conflict with the department letter of February 24, 2020, vide which the revised principles of procurement incidentals were formulated in consultation with the states.

“Any unilateral reduction in the RDF rate is neither as per the principles of procurement incidentals nor is it as per the law passed by the legislature of the state, and thus violates the system of federal structure of our nation,” said the CM.

Noting that the market fee and RDF levied by Punjab are notified under a law, the CM said the RDF has been disallowed for the first time in the provisional cost sheet issued by the Centre.

In a communication in October last year, the state department of food and civil supplies made a detailed representation to the Centre on the RDF, said the CM, adding that in a demi-official letter sent in December, he requested Goyal for early release of the RDF.

Subsequently, in a letter sent in January this year, the state government had submitted requisite information sought by the Centre’s ministry of food and public distribution in October 2020. Further information sought by department of food and public distribution regarding details of RDF receipt and expenditure during 2018-19 to 2020-21 was submitted last month, said the CM.

Amarinder also reiterated that there are statutory provisions for spending the levy collected under the RDF Act and it is beneficial for the development of rural infrastructure, which in turn positively impacts agriculture production and marketing of foodgrains.