Punjab moves Supreme Court against Union for refusing to reimburse fees on food grains procurement

Punjab has filed a suit in the Supreme Court accusing the Union government of overstepping into the exclusive legislative competence of the State by insisting that the latter reduce its statutory charges.

Punjab has filed a suit in the Supreme Court blaming the Union of refusing to reimburse statutory charges — market fees and rural development fees (RDF) — levied by it on procurement of food grains on behalf of the Centre to ensure food security in the country.

“The defendant [Union of India] is refusing to pay the market fees and RDF even though it is validly imposed by the State under Article 246(3) of the Constitution as per State List of the Seventh Schedule,” Punjab’s suit filed through advocate Ajay Pal submitted.

The fees also includes for agricultural produce and markets and fairs. Punjab said it was the fulcrum of India’s agrarian and food economy and called the “food bowl of India”, contributing 21% of rice and 31% of wheat in the central food grains of the nation during 2021-2022.

The State said the RDF receivable outstanding from the Union at the rate of 3% of the MSP from crop years 2021-22 to 2023-24 was a total of ₹3,637.40 crore.

It said the market fees receivable outstanding from the Union at the rate of 3% of the MSP from crop years 2022-23 to 2023-24 was a total of ₹ 1514 crore.

The outstanding market fees from the Union allowed at the rate of 2% of the MSP from crop years 2022-23 to 2023-24 was a total of ₹943 crore.

The suit accused the Union of overstepping into the exclusive legislative competence of the State by insisting that the latter reduce its statutory charges.