Farmers Movement Archive

Punjab govt cuts market, rural development fee for basmati to 1% each

The Punjab government on Tuesday announced reduction in the market development fee (MDF) and rural development fee (RDF) rates from 2% to 1% each to provide a level playing field for basmati traders and millers from within and outside Punjab, particularly in the light of the provisions of the new farm bills. Chief minister Capt Amarinder Singh made the announcement. The move will help keep Punjab basmati competitive in the international market and provide relief of Rs 100 crore to basmati traders/millers, according to an official spokesperson. The change comes with the caveat that no refund of any fee will be allowed to any paddy/rice dealer/miller/trader for the export of the basmati paddy/rice to other countries from the state. The chief minister’s announcements came in response to a proposal of the Punjab Mandi Board, made after examination of the representations received from the Punjab Rice Millers and Exporters Association and the Punjab Basmati Rice Millers and Exporter Association. The basmati exporters and millers had petitioned the state government to charge a lumpsum cess of 1% in place of all other levies. The association had submitted that with the farm ordinances coming into force, the disparity in fee and other charges among the basmati producing states would be around 4%, making the rice industry in Punjab economically unviable as it would be unable to compete with rice exporters in Haryana, Delhi and Uttar Pradesh, which had exempted market fee from agricultural produce. They had also pleaded that Punjab-based exporters would not be able to cover the additional cost of taxes, which is 4% plus, making it difficult for them to remain in business. This trend may force them to purchase paddy from other states to remain in competition with their counterparts in Haryana, UP and Delhi.

Hindustan Times

22-09-2020

Chandigarh