Basmati exporters seek clarity over market fee
Say Punjab’s neighbouring states have accepted central ordinance giving levies’ exemption
CHANDIGARH: Basmati exporters based in Punjab are uncertain over the purchase of the aromatic rice variety from the state as the Centre’s new ordinance for agriculture marketing, allowing farmers to directly sell their produce to exporters, has created a parallel system even as the Punjab government has opposed it.
The Punjab rice millers and exporters association have raised the contentious issue with the state government through representations to clarify its stand on the new ordinance as the neighbouring states, particularly Haryana and Uttar Pradesh, have accepted the central ordinance.
The Association feels that since the new paddy crop of 1509 variety will start arriving in the mandis by September 15, the issue of the 2% market fees and 2% rural development fund (RDF) levied by the state Mandi board remained unresolved as the new ordinance gives exemption of these two levies, provided the crop is purchased directly from the farmers or is procured from a private market area as envisaged in the new act. This year, basmati was grown over 17.5 lakh acres and arrival of the aromatic produce has started in some parts.
Demanding rationalisation of the mandi fee and RDF, the exporters said they will like to purchase levy-free basmati as per the ordinance and buy paddy either directly from the farmers or from other states which offer exemptions.
“It is important to add that the basmati growing states of Haryana, UP, Uttrakhand and Jammu and Kashmir have notified that they will be levying only 1% user charges on the produce brought to their mandi yards while adhering to the new norms under the ordinance which would definitely make the Punjab paddy costly, with 4% fees and fund being levied by the state,” said association director Ashok Sethi. He led a delegation of rice exporters from state to meet cabinet minister Tript Rajinder Singh Bajwa on Sunday for clarity over the matter.
Sethi said Bajwa assured the exporters that the state government would come to the rescue of the rice millers by bringing parity in taxes, allowing the industry to grow further while giving better rates to the farmers. According to Bajwa, agro processing ventures are an important segment and he will apprise the Punjab CM for a possible way out. Top officers in the mandi board revealed that the matter was under consideration of the top brass in the state and a statement will be issued shortly.
According to rice exporters, the taxes imposed by Punjab government will leave their trade uneconomical and render their rice export unviable as they can’t compete with the exporters based in Haryana, UP and Delhi as the disparity of taxes would lead to financial crisis.
The rice exports had a phenomenal growth during last three years with exports from state touching Rs.14,000 crore, out of the total country’s export of Rs 34,000 crore as per the latest figures released by Agricultural and Processed Food Products Export Development Authority (APEDA).
The association claimed that it remained at the forefront in educating basmati growers to use minimal pesticides and other agro-chemicals so that the produce is accepted worldwide. In 2017, the basmati consignments faced rejection from European countries and Saudi Arabia due to presence of fungicide higher than permissible limits.