In a concerted effort to address the critical issues surrounding the Rural Development Fund (RDF) and Market Development Fund (MDF), Punjab Finance Minister Advocate Harpal Singh Cheema, Food and Civil Supplies Minister Lal Chand Kataruchak, Member of Parliament Vikramjit Singh Sahney and Punjab Chief Secretary KAP Sinha called on the Union Finance Minister Nirmala Sitharaman in New Delhi today.
The delegation emphasized the urgent need for the release of RDF and MDF payments amounting Rs 7000 crore, which are crucial for maintaining Punjab's extensive agricultural marketing infrastructure. Revealing details of the meeting while interacting with media here, Punjab Finance Minister Advocate Harpal Singh Cheema said that the meeting was marked by a constructive discussion, with the delegation underscoring the unique challenges being faced by Punjab due to delay in payment of RDF and MDF.
“Officers of the state overnment also accompanied us to apprise the Union Finance Minister about the substantial role of these funds in the development of the Mandi Board, Mandis, roads connecting Mandis, and other Agricultural Marketing Infrastructure", he added.
Finance Minister Harpal Singh Cheema said that the RDF and MDF in the case of Punjab, which is a Decentralized Procurement (DCP) State, cannot be compared with other non-DCP states. He said that Punjab's mandi infrastructure has been developed over decades and has significantly improved the procurement processes.
We have to charge a higher RDF/MDF because of this vast and time-tested infrastructure that no other state possesses. It is due to the RDF and MDF that we have been able to develop a vast network of roads connecting the remotest of our villages to the mandis.
These roads now demand maintenance and recarpeting, which will not be possible without the required RDF/MDF funds”, he added. Stressing on the need to resolve the RDF and MDF issue on priority, Finance Minister Harpal Singh Cheema said that any further delay in the release of funds will seriously limit the state's ability to maintain the infrastructure involved and cause procurement issues, which is the absolute last thing the Government of Punjab and the Government of India want.
He expressed optimism that a decision would be made soon and RDF and MDF payments were expected to be released soon by the Union Government to provide much-needed financial support for the continued development and maintenance of Punjab's agricultural infrastructure.