Rajya Sabha MP Vikramjit Singh Sahney Urges Centre to Enhance Agri Fund and Release Punjab's RDF
Rajya Sabha member Vikramjit Singh Sahney on Friday made a strong appeal to the Central government to significantly boost the Agriculture Infrastructure Fund (AIF) interest-subvention project limit from the current Rs 2 crore to Rs 5 crore. Additionally, he pressed for the immediate release of Punjab's long-pending Rural Development Fund (RDF), highlighting critical issues affecting the state's agricultural and rural sectors.
Reduction and Non-Release of RDF and MDF Support
Sahney raised serious concerns over the reduction and non-release of the Rural Development Fund (RDF) and Market Development Fund (MDF) support to Punjab. He pointed out that the levy linked to Minimum Support Price (MSP) procurement was drastically cut from 6% to 2% in 2022. This reduction is particularly impactful given Punjab's massive procurement responsibilities, handling approximately 18 million tonnes of paddy and 12 million tonnes of wheat annually—far exceeding the procurement volumes of all other states combined.
He emphasised that this funding is vital for maintaining Punjab's extensive rural infrastructure. Specifically, 64,724 kilometers of rural link roads and 1,936 mandis (agricultural markets) in the state depend heavily on resources from the RDF and MDF. Sahney called for urgent coordination between the Centre and the State government to resolve this pressing issue, stressing that delays could severely hamper rural development and agricultural efficiency.
Inadequate AIF Ceiling for Modern Infrastructure
Sahney also highlighted the inadequacy of the current AIF ceiling, arguing that the Rs 2 crore limit is insufficient for building modern cold storage and warehousing facilities. These infrastructures are essential to curb post-harvest losses, which the National Bank for Agriculture and Rural Development (Nabard) estimates at a staggering Rs 1.5 lakh crore annually across India. By increasing the limit to Rs 5 crore, farmers and agri-businesses could better invest in technologies that reduce waste and improve market access.
He urged the finance minister to intervene and find a viable solution to break the impasse on the RDF, noting that timely action is crucial for sustaining Punjab's agricultural productivity and supporting its rural economy.
Government Response and Assurance
In response to Sahney's appeals, Agriculture Minister Shivraj Singh Chouhan welcomed the suggestions and assured that the requests would be carefully considered. This positive acknowledgment indicates potential for future policy adjustments, though immediate action remains pending. The discussion underscores the ongoing challenges in balancing central funding with state-specific agricultural needs, particularly in key producing regions like Punjab.
The call for enhanced support reflects broader issues in Indian agriculture, where infrastructure gaps and financial constraints continue to affect farmers' livelihoods and food security. As debates around MSP and rural development funds intensify, stakeholders await concrete steps from the government to address these critical concerns.
