New year gift: Uttarakhand govt removes mandi cess on vegetables

The state govt removes 2% mandi cess on vegetables and fruit

Call it an Aam Aaadmi Party effect or a new year gift, the Uttarakhand government has decided to waive taxes on vegetables to bring down prices.

After the recent spurt in vegetable prices, the government has removed the two per cent mandi cess on vegetables and fruit in the hill state under the Uttarakhand Agriculture Production Marketing (Development and Regulation) Act. This will put an additional burden of Rs 7.25 crore on the state exchequer, said Agriculture Minister Harak Singh Rawat.

"With the waiving of the mandi cess, we expect the prices of vegetables and fruit to fall by 10 per cent," said Rawat. The government is yet to implement the Act in its spirit, which seeks to promote contract farming, bring reforms in agriculture, provides for better regulation of marketing agricultural produce and establish a more efficient marketing system.

The government has also decided to give Rs 5000 each to all the disaster-affected families for buying clothes for winter. This money will be given from the Chief Minister's relief fund.