Levy 1% surcharge, exempt us from taxes, say basmati exporters
CHANDIGARH: Punjab’s basmati exporters have demanded that the state government fix a 1% lump sum surcharge on the purchase of premium aromatic basmati.
In lieu of this, exporters seek withdrawal of all other taxes and levies including 2% mandi fee and Rural Development Fund (RDF) each (total 4%) that the state government imposes. Haryana and Uttar Pradesh have, recently, adopted the same system for basmati.
Of the premium aromatic variety, 1509 variety is being harvested and is arriving in mandis for procurement.
The 1121 variety, sown over 60% area, will start reaching the mandis from mid-October.
“We have no problem in giving dami to arhtiyas,” an exporter said.
He added mandi operations generate lot of employment for labour.
Bal Krishan Bal, who represents the exporters association said, total basmati paddy production in Punjab during 2019 was 26 lakh tonne from 14.5 lakh acre, and was valued at ₹6,500 crore, on which ₹97 crore was collected by the state government as mandi fees and other taxes.
“A total of ₹97 crore revenue was collected,of which ₹50 crore was refunded as a benefit for direct export, giving net revenue of ₹47 crore to state. On top of this, ₹150 crore of
Basmati production in Punjab during 2019 was 26 lakh tonne, valued at ₹6,500 crore, on which ₹97 crore was collected by state as mandi fees and other taxes BAL KRISHAN BAL,
Exporters association
mandi fee and RDF was not paid by exempted units,” said Bali, adding, “With the formula, we have proposed the government would earn between ₹70 crore and ₹80 crore without any hassle.”
Bali added basmati also came with a lower lesser electricity cost for the state government as it required basmati 40% less water than coarser varieties.
Top officials in the mandi board said the matter was under consideration.
Demanding rationalisation of the mandi fee and the RDF, exporters say they would prefer buying basmati either directly from the farmers or from other states which offer exemption.
A section of exporters have even threatened not to buy basmati from Punjab, till the levies and taxes are settled.