CHANDIGARH: A confrontation is on the cards between the Centre and the Punjab government as the Centre has told the Bhagwant Mann dispensation that it should bring down the Market Development Fee (MDF) from the rate of 3% of the Minimum Support Price (MSP) to 2% and that it is considering the
allowance of Rural Development Fund (RDF) at the rate of 3% of the MSP.
However, the cash-strapped state government has written back to the Union government asking for releasing the pending RDF amounting to Rs 2872.40 crore. It says delaying these levies is affecting rural infrastructure and the economy of the state. Punjab receives around Rs 3,600 crore annually on account of these two fees.
Union Minister for Food and Public Distribution Piyush Goyal referred to Chief Minister Bhagwant Mann’s January 30 letter on March 27, saying he has had the matter examined. “The matter regarding allowance of RDF @ 3% of MSP is under active consideration of the department,’’ said Goyal.
“This department has twice (June 29, 2022, and January 5) requested the Punjab government to revisit the existing levies so as to restrict the statutory charges only up to 2% of MSP. Most states have already restricted the claim of their statutory charges to that level,” Goyal wrote.