Thread by @ramanmann1974

Thread

With #FarmLaws gone, how Center has moved thru backdoor to finish Punjab Mandis

Since 1987, Punjab got Rural Development Fund #RDF @3% of MSP procurement & Mandi Devlp Fee #MDF @3% of MSP; for Mandi upgradation/maintenance; now Modi Govt has finished RDF & cut MDF to 2%.

Rural Development Fund of 3% is payable to the Punjab Rural Development Board as per the Punjab Rural Development Act (PRDA) 1987, all expenditures are made as per provisions of the PRDA, 1987 and all heads of expenditures are basically for rural, agriculture and related issues !

But, now instead of 6% RDF+MDF; Centre will pay only 2% Rural Development Fund & Mandi Fee, which Punjab Govt collected on MSP procurement; this money was used to maintain/upgrade 1800 mandis, & upkeep of 70000 km-rural link roads which ensures a mandi within 20 km of the #farmer

Union Minister for Consumer Affairs, Food and Public Distribution @PiyushGoyal in a letter has asked Chief Minister @BhagwantMann to direct officers “to restrict the statutory charges up to 2% of the MSP procurement. This diktat is unconstitutional as Marketing is a state subject

With this diktat of Modi Govt, the already "heavily" indebted Punjab will lose over 3,000 crore/year. Not only has Modi Govt arbitrarily reduced the Rural Development Fund & Mandi Development Fee, it has also slashed administrative charges for food procurement from 2.5% to 1% !

Centre in its letter dated Oct 23, 2020 had sent the Provisional Cost Sheet (PCS) for Kharif Marketing Season 2020, wherein it did not account for statutory dues of Rural Development Fund calculated at 3% of the MSP. The excuse was that Punjab used RDF funds to waive farm loans !

On 19/1/21 during #FarmersProtest, Centre arbitrarily reduced Punjab's Rural Development Fund #RDF from 3% to 1%, on one hand, Centre was saying they will not do away with the APMC Act, & on the other, they reduced RDF, which was was being given to Punjab for more than 4 decades.

When Punjab Govt objected, Center's excuse was that, #RDF, levied by Punjab on the Centre while procuring foodgrains for the Central pool, could not be used for a populist scheme of State Govt and did not release 1,150 crore pertaining to the Kharif procurement season of 2021.

With Centre holding back Rs 1150 Cr RDF; on 12 Apr 2022, the Punjab cabinet approved the Punjab Rural Development (Amendment) Ordinance, wherein Punjab Govt will use RDF only on Mandis, this addressed Centers objection, that RDF will only be used on upgrading/maintaining Mandis.

In Rabi marketing season 2022-23, Center allowed Market Development Fund (MDF) of 2% as against 3%, causing a loss of 175 crore. For the wheat season-2023-24, the Centre reduced the MDF from 3 to 2%, an additional loss of 265 crore i.e. a total loss of 440 crore for the 2 seasons

But now, after the amendment, after addressing the objections of the Center, that Rural Development Funds will not b used for #farm loan waiver, but only for maintenance, upgradation of mandis; Center is refusing to pay #RDF+Mandi tax to Punjab, which has ballooned to 5637 crores

#FarmLaws goal was to decimate Punjab's mandi structure; with the repeal of #FarmLaws, Modi Govt could not succeed in its aim, so now, Modi Govt is finishing off mandis, by taking this route, by starving the APMCs of the funds, that are necessary for mandi upkeep, upgradation !

Now, Center has reduced Punjab's Rural Development Fund #RDF & Mandi Development Fee #MDF to 2%. Strangely, @BhagwantMann Govt did not fight earlier in the courts as "Marketing" is a state subject; but now Punjab has moved to S.C, this matter will come up on 25'th Sept !