Levy on basmati halved in Punjab - ECAS Punjab

Levy on basmati halved in Punjab

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Tribune News Service

Chandigarh, September 22

Succumbing to pressure by basmati exporters, the Punjab Government today halved the market development fee and rural development fee for its purchase to one per cent each. The move will help end the strike by exporters and traders, who have refused to buy basmati from Punjab citing higher tax structure in the state.

No refunds

  • The move will provide relief to the tune of Rs100 crore to basmati traders/millers

  • However, no refund will be made to dealer/miller/ trader for export of basmati to other countries

Even as PUSA 1509 variety continues to arrive in mandis and sell at Rs 1,900 per quintal against last year's price of Rs 2,400 per quintal, the exporters decided to buy the produce from neighbouring Haryana and Delhi.

The move is being seen as a step to woo farmers who are on a warpath because of the farm Bills. The reason for farmers' refusal to buy from Punjab was mainly because the Haryana and UP Governments have decided to go ahead with the Farmer Produce Trade and Commerce (Promotion and Facilitation) Bill, which allows traders to buy produce outside the agriculture produce marketing committees, by paying just one per cent tax. In Punjab, they were to pay 4.25 per cent tax.

"We will buy from a state where the tax is low, in order to remain competitive. The government understood our predicament in this time of economic slowdown and decided to reduce the taxes," said Ranjit Singh Josan, vice-president, Punjab Rice Millers and Exporters Association.

The area under basmati in Punjab has increased by 25,000 hectares this year — from 6.25 lakh hectares in 2019 to 6.50 lakh hectares now.

from The Tribune https://ift.tt/2FIRmoF

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