Bhagwant Mann met Union Food and Public Distribution Minister Prahlad, ensured relief measures for farmers.

Punjab Chief Minister Bhagwant Singh Mann met Union Food and Public Distribution Minister Pralhad Joshi in New Delhi today. During the meeting, he ensured many important relief measures for the farmers and mandis of the state. During this time, the Center agreed to run special trains for lifting 155 lakh metric tonnes of grains lying in Punjab, which will help in dealing with the serious grain storage crisis in the state before the Rabi marketing season.

Emphasis on addressing structural issues

Along with this intervention, Chief Minister Bhagwant Singh Mann stressed on resolving the structural issues burdening Punjab, including high cash loan interest rates, Rs 9,000 crore pending under the Rural Development Fund, compensation for hailstorm-affected crops and long-pending demands of commission agents. The Union Minister responded positively to these issues and assured to take concrete steps including creating a secretary level arrangement to resolve the pending issues.

Sharing details of the meeting on the X handle, Chief Minister Bhagwant Singh Mann said: “Today in Delhi, I held an important meeting with Union Food Minister Pralhad Joshi ji. During this, we discussed in detail various major issues related to Punjab, including the demands of the commission agents.”

The Chief Minister further wrote: “During the meeting, important issues were raised with the Centre, including immediate lifting of 155 lakh metric tonnes of wheat and rice lying in Punjab and immediate payment of Rs 9,000 crore outstanding under RDF. Also, there was a demand to reduce the high interest rates imposed on states under the cash credit limit and to consider the demands of the commission agents on priority basis with the Centre. Also, there was a demand for relief to the mandi labourers. An appeal was made to immediately resolve the issues related to EPF and a demand was also made to give appropriate compensation to the farmers for the losses caused due to untimely rains.

He further wrote, “I am extremely happy that the Union Minister has responded very positively on all these issues. We are fully committed to protecting the interests of Punjab.”

Talk about huge shortage related to storage of crops

Talking about the huge shortage related to storage of crops, Chief Minister Bhagwant Singh Mann said, “180.88 lakh metric tonnes of grains (151.20 lakh metric tonnes of rice and 29.67 lakh metric tonnes of wheat) are already stored in the covered warehouses of the state, while the total available covered storage capacity is about 183 lakh metric tonnes (173 lakh metric tonnes covered warehouses + 10 lakh metric tonnes of wheat silos). As a result, rice “Only 0.50 lakh metric tonnes of covered space is available for wheat and 1.75 lakh metric tonnes of silo space is available for wheat.”

He said, “Rabi Marketing Season (RMS) 2026-27 has started in the state from April 1, 2026, in which potentially 130-132 lakh metric tonnes of wheat will be procured.”

Highlighting the existing stock burden, the Chief Minister said that out of last year’s 38 lakh metric tonne wheat stock, about 8.71 lakh metric tonne stock is already lying in CAP or open storage in the state, resulting in shortage of scientific storage capacity and about 40 lakh metric tonne wheat will have to be stored in less favorable conditions.

Raising the issue of slow lifting of grains, Chief Minister Bhagwant Singh Mann said that our government has been continuously demanding lifting of wheat and rice from the state so that necessary storage capacity can be created for procurement and storage of rice. However, for the last several months the average lifting of wheat and rice from the state has been only 5 lakh metric tonnes per month.

He stressed that at least 12 lakh metric tonnes of wheat and rice should be lifted every month or alternatively, arrangements should be made to increase the distribution of grains under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), as was done during the COVID-19 pandemic, keeping in mind the difficulties faced by the common people, especially during the ongoing conflict in West Asia. He further said that this will ensure smooth procurement operations during Rabi marketing season 2026-27 and milling of paddy can be expedited for Kharif marketing season 2025-26.

Raising another issue, Chief Minister Bhagwant Singh Mann said the funds for the purchase are being managed by a consortium of banks led by State Bank of India, authorized by the Reserve Bank of India. He further said that the interest rate being charged by State Bank of India is 0.5 percent more than the recovery rate applicable to Food Corporation of India and is charging interest on monthly compounded basis.

He further said that however, in the provisional cost sheets issued by the Government of India for every season, the State is allowed only simple interest at the Food Corporation of India (FCI) interest rate. As a result, the state of Punjab is incurring a loss of approximately Rs 500 crore every season, which can be avoided.

He further said that we have also raised this issue with the Union Finance Minister. The third issue is related to Rural Development Fund. We have repeatedly said that there is a need to build roads leading to our mandis and we have also passed a bill in the Assembly which states that this money will be used only for the repair of mandis, modernization of mandis and improving the roads of mandis. However, the previous government led by Captain Amarinder Singh misused these funds, due to which this money has been stopped.

He further said that we have already reached the Supreme Court on this issue and the matter is currently under consideration. Instead of prolonging the litigation, the Central Government should release the legitimate dues of Punjab. This is a part of Punjab and a right of Punjab and we are only demanding what is our legitimate right.

He further said that if there is any constraint in the Centre’s budget, the funds can be released in installments or in any manner deemed appropriate. But this amount has now reached Rs 9000 crore, which is still not being released.

The Chief Minister further said that we have also raised this issue strongly and we have been assured that in the coming days, a meeting will be called at the Secretary level to make some arrangements in this regard, through which the release of these funds will start.

He appealed, “Punjab should be allowed to charge interest on monthly compounded basis as per the interest rate charged on Cash Credit Limit (CCL) by State Bank of India, instead of the interest rate of Food Corporation of India.”

Speaking on the issue of commission agents, he said, “The main issue is that the commission agents are demanding 2.5 percent commission, whereas the Government of India has fixed its commission at the existing rates.”

Considering the issue of commission of commission agents, Bhagwant Singh Mann said, “The Department of Food and Public Distribution (DFPD), Government of India, fixed the commission of commission agents (commission agents) at Rs 45.88 per quintal for paddy for Kharif Marketing Season (KMS) 2020-21 and Rs 46.00 per quintal for wheat for Rabi Marketing Season (RMS) 2021-22. Was.”

He further said, “Since that time, the same fixed commission has been continued for both paddy and wheat every year, due to which the commission agents are dissatisfied and the state government is continuously writing to the central government to increase the commission of the commission agents.”

The Chief Minister further said, “The Food Ministry, Government of India, has made a marginal increase in the commission of Rs 4.75 per quintal for wheat (from Rs 46 to Rs 50.75) and Rs 4.73 per quintal for paddy (from Rs 45.88 to Rs 50.61), which will be applicable from RMS 2026-27.” He further said, “This nominal increase has not been accepted by the commission agents and it has been demanded that as per the Punjab Agricultural Produce Market Act, 1961 and the rules made thereunder, the commission of commission agents should be fixed at 2.5 percent of the MSP.”

He appealed, “The Government of India through DFPD should review this nominal increase in the commission of commission agents and approve the commission at the rate of 2.5 percent of MSP as per the Punjab Agricultural Produce Market Act, 1961.”

Highlighting another concern, Chief Minister Bhagwant Singh Mann said, “For the last several years, the Food Corporation of India has been retaining 30 per cent of the mandi labor charges paid for crops purchased every season due to EPF related issues.” He further said, “As a result, an amount of approximately Rs 50 crore belonging to the commission agents is lying with FCI, which has further increased their financial burden.”

“State agencies are making payments to the commission agents after receiving undertakings or affidavits stating that if any liability is assessed by the EPF officials, the commission agents will fulfill it,” the Chief Minister said. He stressed, “Therefore, it is not appropriate in any way to retain 30 percent of the labor charges as per EPF.” Appealed to the Union Minister to direct FCI to release the payment by taking affidavits like the state agencies.

Punjab’s key role reiterated

Reiterating Punjab’s key role in the national food procurement system, Chief Minister Bhagwant Singh Mann further said that there is a need for timely intervention by the Center on these issues to ensure uninterrupted procurement, protect the interests of farmers and prevent additional financial pressure on the state.