Chandigarh: In a bid to mobilise additional resources in the Punjab Mandi Board and Punjab Rural Development Board, the state cabinet today decided on a hike of 1% each in the Market Development Fee (MDF) and the Rural Development Fee (RDF). The hike is likely to mop up additional funds to the tune of Rs.900 crore per annum.
Disclosing this here today, a spokesperson of the Chief Minister's Office said that the government will soon promulgate an ordinance to amend the Punjab Agricultural Produce Market Act, 1961 to achieve this objective.
The spokesperson disclosed that as per the Punjab Agricultural Produce Market Act, 1961, MDF is levied ad valorem at the rate of 2%. As per Section 5 of the Punjab Rural Development Act, 1987, RDF is also levied at the same rate of 2%.
The fee so collected by the Market Committees is remitted 100% to the Punjab Rural Development Board and the funds mobilized from MDF are utilized for building rural infrastructure, including rural link roads, for the benefit of the farmers.
