Andhra Pradesh Govt plans to cut paddy cess, abolish market fee
Andhra Pradesh may abolish the market fee on rice exports and cut the paddy cess from 2% to 1% to boost agriculture. CM Chandrababu Naidu assured rice millers of early action. The move could raise paddy demand and prices but halve marketing department revenue, sparking employee opposition.
Guntur: The state .government is considering a significant move to boost the state’s agriculture sector by abolishing the market fee on rice exports and reducing the agricultural marketing department cess on paddy from 2 per cent to 1 per cent. Chief Minister N Chandrababu Naidu .assured the Andhra Pradesh Rice Millers Association that a favorable decision will be made soon. A cabinet sub-committee has been formed to study the issue and submit recommendations. A formal government order is expected once the report is finalised.
Sources indicate that the agricultural marketing department has already begun preparations to implement the changes. The abolition of the market fee on rice exports is anticipated to encourage traders to increase shipments to other states and countries, thereby raising demand for paddy and ensuring better prices for farmers. Ch Subba Rao, a leader of the AP Rice Millers Association, noted that states like Maharashtra, Karnataka, and Tamil Nadu already have no export tax, giving their farmers a competitive edge. ”By abolishing the market fee, our farmers will also be able to sell rice in other states, which will increase the demand for paddy,” he said. The proposed reduction in the agricultural market cess on paddy from 2 per cent .to 1 per cent is expected to lessen the financial burden on traders, with the benefits hopefully being passed on to farmers.
However, the move could significantly impact the agricultural marketing department’s revenue, which currently stands at around Rs 700 crore per year from cess collections. A reduction to one percent would cut this revenue by half, to about Rs 350 crore. Employees of the department are opposing the move, fearing a severe financial crisis that could affect their salaries and pensions. They have urged the government to pay their salaries from the ‘010’ head of accounts to ensure financial stability.
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Source : The Hans India
