Punjab Chief Minister Bhagwant Singh Mann met Union Food and Public Distribution Minister Pralhad Joshi in New Delhi on Friday and secured major relief measures aimed at easing pressure on farmers and mandis. The Centre has agreed to operate special trains to transport 155 lakh metric tonnes of foodgrains currently lying in Punjab, a move expected to address the state’s severe storage shortage ahead of the Rabi marketing season.
In addition to this immediate step, Mann raised several long standing issues affecting the state. These included higher interest rates on Cash Credit, pending dues of around ₹9,000 crore under the Rural Development Fund, compensation for crops damaged by hailstorms and the demands of commission agents. The Union Minister responded positively and assured follow up action, including the creation of a mechanism at the secretary level to resolve pending financial matters.
Sharing details of the meeting on social media, Mann said discussions focused on key concerns related to Punjab, including the demands of arhtiyas and the urgent need to clear foodgrain stocks. He highlighted the need for faster movement of 15.5 million metric tonnes of wheat and rice and called for the release of pending Rural Development Fund payments. He also urged the Centre to reduce interest rates under the Cash Credit system and resolve issues related to EPF payments for mandi labourers.
The Chief Minister pointed out that Punjab is facing an acute shortage of storage space, with 180.88 lakh metric tonnes of foodgrains already occupying nearly the entire covered capacity of around 183 lakh metric tonnes. With the Rabi Marketing Season for 2026 to 27 beginning on April 1, the state expects procurement of around 130 to 132 lakh metric tonnes of wheat, which will further strain storage facilities.
He added that a significant portion of last year’s wheat stock is already lying in open storage due to limited space, forcing the state to store nearly 40 lakh metric tonnes under less than ideal conditions. Mann also expressed concern over the slow pace of foodgrain movement, noting that only about 5 lakh metric tonnes are being transported each month. He suggested increasing this to at least 12 lakh metric tonnes monthly or expanding distribution under central welfare schemes to ease the burden.
Raising financial concerns, Mann said Punjab is incurring losses due to higher interest rates charged by banks on procurement funds compared to the rates permitted by the Centre. He pointed out that this mismatch results in an avoidable loss of around ₹500 crore each season and called for alignment of interest calculations.
He also pressed for the release of pending Rural Development Fund dues, stating that the money is essential for improving mandi infrastructure and rural roads. While acknowledging that the issue is currently under legal consideration, he urged the Centre to release the funds, even in phases, as they rightfully belong to Punjab.
On the issue of commission agents, Mann said the current commission rates fixed by the Centre have not kept pace with expectations, leading to dissatisfaction among arhtiyas. He urged the Centre to revise the commission to 2.5 percent of the minimum support price in line with state legislation.
He further highlighted concerns over withheld mandi labour payments, stating that the Food Corporation of India has been holding back a portion of these funds due to EPF related issues. Mann argued that since state agencies are already securing undertakings from arhtiyas to address any liabilities, there is no reason to continue withholding payments and called for their immediate release.
Emphasising Punjab’s critical role in the national food procurement system, Mann said timely intervention by the Centre is essential to ensure smooth procurement operations, safeguard farmers and prevent additional financial strain on the state.
