No rural development fund for Punjab

Ruchika M Khanna

Tribune News Service

Chandigarh, June 6

The Punjab Government will not get any Rural Development Fund (RDF) for the 132 lakh metric tonnes of wheat it has procured for the central pool in the just-concluded wheat procurement season.

Estimated loss

• With a cut of Rs70 per quintal on ex-mandi price, the state government will get Rs93  crore less than what they had demandedfrom the Centre for the wheat procured this year
• If the cut is of Rs150 per quintal, the state stands to lose Rs184 crore on total incidental costs incurred by it

The Centre, fixing the provisional economic cost of wheat, has imposed cuts on other incidental charges demanded by the Punjab Government. These include a cut in the commission given to commission agents, mandi labour charges, charges for packaging and transportation charges among others. In all, over Rs 70 per quintal has been deducted from the ex-mandi delivery price.

The state was to get Rs 2,333.89 per quintal , including Rs 1,975 per quintal MSP of wheat and incidental charges. But the state, after these cuts, will get Rs 2,181.64 per quintal.

While the RDF of Rs 59.25 per quintal has been cut on wheat (after it was cut on the paddy procured last year), cuts have also been imposed on deliveries to be made from mandis to FCI godowns and for deliveries from agency godowns to the FCI godowns. These cuts are on account of labour charges, transportation charges, custody and maintenance charges, besides interest charges. “If all these cuts are taken into account, the total cut imposed is Rs 150 per quintal,” said a senior officer in the Punjab government.

The charges for incidentals, allowed under the provisional cost, which has been conveyed to the state government through a letter dated June 4, also says that to ensure the proper utilisation of subsidy, the FCI may insist on requisite certificates and its agencies before the release of incidentals on account of statutory charges. Punjab Food and Supply Minister Bharat Bhushan Ashu said there was little doubt that Punjab was being targeted by the BJP-led government for the ongoing farmers struggle.

“This is like an undeclared emergency. On a government-to-government basis, there should have been some discussion before this arbitrary cut was announced,” he said, showing his displeasure. Officials in the Food and Supply Department say that since the sharp cut is not acceptable to Punjab, the state will refer the case to a committee to resolve the issue.

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