NEW DELHI (Commoditiescontrol) - Re-Imposition of purchase tax on procurement of basmati paddy by the government of Punjab has deepened the woes of farmers and the basmati industry as well in the state. Farmers in Punjab were already distressed due to lower rates of basmati and now levies of seven percent on purchase of paddy escalated the problems of farmers and the industry as well, according to Punjab Basmati Rice Mills Association(PBRMA).
It should be noted that five percent of tax on the purchase of paddy is already applicable in Punjab, while no such tax is applicable in Rajasthan, Uttar Pradesh, Madhya Pradesh and Delhi.
Amrik Singh, a farmer from Malwa region of Punjab who reached Malout market to sell 1509 variety of paddy said that he had been trying to sell his crop for past six days, but he could not find prices above Rs. 1,460/100kg while the same quality of paddy was procured at Rs. 1,600/100kg at a nearby market in Haryana. Finally, he planned to proceed to either Dabwali or Sirsa market in Haryana.
Apart from purchase tax, 0.5 percent cess and 0.5 percent on the commission of the commission agent also are levied in Punjab which are not applicable in Haryana, said Ashok Grover, President, PBRMA. Also, truck freight in Punjab is higher than Haryana due to monopoly of the Truckers union, he added. According to him, Truck freight in Punjab is at Rs. 110/100kg while it is only Rs. 50/100kg in Haryana.
PBRMA General Secretary Ashish Kathuria decried re-imposition of purchase tax and considered it against healthy business atmosphere and said it would increase the burden of paper work.
(By Commoditiescontrol Bureau; +91-22-40015533)