Posted on August, 25, 2022 at 07:05 am
Concerned over the rise in the prices of basmati varieties of paddy, rice traders from Haryana have urged the government for a reduction of levies imposed on buying long-grained aromatic rice from Agriculture Produce Market Committees (APMCs) of the state.
Haryana, which accounts for more than half of basmati shipments from India, imposes a total of 6.5 percent levy on the purchase of foodgrains from its mandis.
According to rice exporters, they have to pay an arhtiya commission of 2.5%, a market fee of 2% and rural development cess of 2%.
Besides, the prices of basmati’s early maturing varieties of Pusa 1509 and Pusa 1692 have jumped to above ₹3,500 per quintal against ₹2,200-2,500 the last year following a surge in demand for rice in the international market.
“Even the prices of paddy are above ₹3,500 and we have to pay ₹200 more on the purchase of every quintal of basmati besides the transportation and handling charges,” said a private trader from Karnal grain market.
Traders said Haryana is charging the highest levy in the country as the levies are 3% in Delhi, Uttar Pradesh and Uttarakhand, 3.25% in Rajasthan and 4.5% in Punjab.
Nathi Ram Gupta, president of the All-India Rice Exporter Association (AREA), said such a hefty levy on traders is not justified as this will not only affect the trade in the grain markets of Haryana but also promote horse-trading.
“We have taken up the issue with the chief minister and top government functionaries, but did not get any positive response,” he added.
“The higher levies of 6.5 percent bite into the margins of traders of the state and they won’t be able to buy paddy from mandis of Haryana if the levies are not reduced,” said Vijay Setia, a basmati rice exporter from Karnal and former president of the AREA.
The traders said that they have already raised a request with the chief minister Manohar Lal Khattar that Haryana should reduce the levy which is more than double of the neighbouring states.
The Haryana Rice Exporters Association (HREA) had written to chief minister Manohar Lal Khattar that rice millers should be provided some relief so that they could compete in the international market with traders from the other states.
Even a delegation of rice exporters from the state had met the additional chief secretary, agriculture and farmers’ welfare department, the chief administrator of the Haryana agricultural marketing board, earlier this month.
In June last year, the Haryana government increased the market fee on basmati as well as the rural development cess from 0.5% to 2% each putting an extra burden on private basmati traders.
Source: The Hindu Times