Paddy price falls following mandi tax exemption by Chhattisgarh govt

Farmers selling paddy at the Krishi Upaj Mandi (agriculture product market) are in a fix as the price has come down following the withdrawal of mandi tax exemption. The period of exemption of mandi tax granted by the Chhattisgarh government expired on July 12.

Since no new order was issued to extend the period of exemption, mandi tax came into effect in the Krishi Upaj Mandi.

The state levies 5.20 per cent market fee (mandi tax) that includes mandi fee of Rs 3, farmers’ welfare cess of Rs 2 and other tax of Rs 0.20. Earlier, the traders were paying Rs 2 as mandi tax. The Chhattisgarh government amended the order and imposed a tax of Rs 5.20 in December last year.

Following protest from traders, the state government gave exemption, the validity of which ended on July 12.

According to the practice, the farmers first sell their yield directly in the state-owned primary cooperative society. Here, the state government purchases paddy by paying the minimum support price (MSP).

In the last kharif marketing season, the government procured 10.7 million tonnes of paddy from the farmers.

According to the policy, farmers can sell only 15 quintal per acre in the society. However, chief minister Bhupesh Baghel recently increased it to 20 quintal per acre. The farmers sell the remaining yield in the Krishi Upaj Mandi to the traders.

The traders have reportedly reduced the price, following the mandi tax coming into effect. They had to bear the tax burden of Rs 5 on purchase of Rs 100.

BJP MLA and former minister Brijmohan Agarwal said that the price of paddy in the market had come down drastically due to the collection of mandi fees by the government.