New Delhi, July 17: To prevent a repeat of last year’s delayed rice procurement in Punjab, the Centre has directed immediate steps to enable the state to expand covered storage space and streamline procurement from farmers.
Union Food and Consumer Affairs Minister Pralhad Joshi issued the directions after a review meeting with Punjab Chief Minister Bhagwant Mann at his residence on Wednesday.
“Our discussion focused on rice procurement from Punjab, the optimal use of existing storage godowns, and the approval of private godowns under the Food Corporation of India (FCI),” Joshi said after the meeting. “I’ve asked the department to take the necessary action. The Centre is firmly committed to the welfare of Punjab’s farmers and a transparent, efficient, farmer-friendly procurement system.”
Chief Minister Mann also sought Joshi’s intervention for the immediate release of over ₹9,000 crore in pending dues, including ₹7,737.27 crore under the Rural Development Fund (RDF) and ₹1,836.62 crore under Market Fees.
According to a statement from the Punjab government, Mann raised the issue of RDF not being allowed since the Kharif Marketing Season (KMS) 2021–22 and Market Fees being insufficient since the Rabi Marketing Season 2022–23.
“The purpose of RDF is to support agriculture and rural infrastructure—developing rural roads, storage and marketing infrastructure in mandis, and promoting automation,” Mann said. He pointed out that despite amendments to the Punjab Rural Development Act, 1987, in line with the Department of Food and Public Distribution (DFPD) guidelines, the funds have not been released.
Mann expressed concern that the non-reimbursement has hurt rural infrastructure and the wider rural economy. “The Mandi Board and the Rural Development Board are finding it difficult to repay loans, maintain existing structures, or invest in new facilities,” he said.
The Chief Minister also flagged the ongoing shortage of covered rice storage in Punjab, which has persisted for two consecutive years. He noted that during the KMS 2023–24 season, this shortfall forced authorities to extend the delivery deadline for milled rice to September 30, 2024.
The Centre’s directive to create additional storage infrastructure and consider private godowns is seen as a critical intervention ahead of the next major procurement cycle.
