Rice exporters have called for a uniform market fee across States and have sought the Centre’s intervention.

In a letter written to Suresh Prabhu, Union Commerce Minister, the All India Rice Exporters Association (AIREA) requested him to intervene to bring a uniform and minimal mandi tax, or market fee, across States.

At present there is a wide variation in mandi tax charged by the Agricultural Produce Marketing Committees (APMCs) in different States, ranging from 0.2 per cent in Madhya Pradesh to 6 per cent in Punjab, said AIREA. “Though all States are signatories to the Good and Services Tax Act, we note that they are levying a mandi tax which is not uniform. This goes against the ‘one nation one tax’ vision of GST,” it said.

The ones to be affected most by this would be farmers, as buyers would have little option but to give lesser price for their produce. “This goes completely against the government’s aim to increase farmers’ income.” Mandi taxes vary across commodities. While APMCs in Punjab charge 6 per cent and 4 per cent in Haryana, Rajasthan and Delhi charge 1.60 per cent and 1 per cent. In the case of oilseeds, the tax ranges from 1-5 per cent to a high of 4 per cent in Haryana and Punjab.

(This article was published on September 15, 2017)
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