Punjab rice traders ask for clarity on Centre’s agriculture ordinance

Fresh basmati rice crop is expected in market by mid-September

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With Punjab opposing the Centre’s agriculture-related ordinance, rice exporters in Punjab are in quandary as fresh rice crop is about to arrive in the market but there is no clarity on issues surrounding the market fee and rural development fund (RDF), according to a trade body.

The Punjab Rice Millers and Exporters Association has asked the State government to clarify its stand on the issue of levying fees as neighbouring States, including Haryana, Uttar Pradesh, Uttrakhand, and the Union Territory of Jammu & Kashmir, have already accepted the new ordinance.

“We are in a total state of confusion. The Central government’s ordinance [Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance] has created a parallel system, allowing farmers to sell their produce directly to exporters, while the Punjab government has opposed the ordinance. The basmati (rice) growing States including Haryana, Uttar Pradesh, Uttrakhand and Jammu-Kashmir (UT) have notified that they would be levying only 1% user charges on the produce brought to their mandi yards while adhering to the new norms under the ordinance. On the other hand, Punjab, which had been levying 2% market fees and 2% RDF, needs to immediately take a decision on the issue,” said Mr. Ashok Sethi, director, Punjab Rice Millers and Exporters Association.

Mr. Sethi said that they had written to the State government for a quick decision on the issue since the new basmati rice crop will start arriving in the

mandi s by the second week of September. “If Punjab continues to levy 4% fees, these taxes will leave our trade uneconomical and render our rice export unviable as we would not be able compete with exporters based in other States given the disparity in taxes,” said Mr. Sethi.

“We appeal to Chief Minister Amarinder Singh to kindly exempt basmati rice from market fee and RDF. The State government needs to work out modalities on fees, etc., in tune with the prevailing situation,” he added.