Why are all the states keeping an eye on this interesting battle going on between the Centre and Punjab government in the Supreme Court?

New Delhi : A tussle has started between Punjab and the Central Government in the Supreme Court. The matter is regarding the increased fee on the purchase of grains at MSP by the Punjab Government. Punjab wants the Central Government to recognize its increased fee, while the Central Government is not ready for this. All the states are eyeing this matter, as it will decide whether the fee imposed by the state governments on the purchase of grains for the Central Government's PDS schemes will be binding on the Central Government or not. The Punjab Government has imposed a levy of 6 per cent of the MSP on the grains purchased from the state, but the Central Government is ready to reimburse only 2 per cent levy which is applicable to all states equally. This levy is different from the price of grains that the Central Government pays to the states. This grain is distributed free of cost or at subsidized prices to the weaker and deprived sections of the society under the Pradhan Mantri Garib Kalyan Anna Yojana, Antyodaya and Public Distribution System.

Following the Centre's refusal to reimburse the 6% duty, Punjab has raised a Centre-State dispute under Article 131 of the Constitution, arguing that “the State Government has the exclusive right to determine the statutory duty to be levied on the purchase of foodgrains on behalf of the Central Government.”