Withdraw market fee levied on agri products: Chamber urges TN government
For movement of notified agricultural products, the market fee has to be paid, a permit obtained from the concerned regulated market and it should accompany the consignment.
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MADURAI: Thanking Chief Minister MK Stalin and Minister for Agriculture and Farmers Welfare MRK Panneerselvam for withdrawing the market fee of 1 per cent levied on maize in response to the demand of farmers and traders, the Agri and All Trade Chamber (AATC), Madurai, has requested to entirely withdraw the market fee levied on all agri products.
The market fee prescribed under the Tamil Nadu Agricultural Produce Marketing (Regulation) Act, 1987, the reasons prompted for withdrawal of the market fee on maize and other 40 agricultural products notified such as paddy, millets, bengal-gram, black-gram, mochai, ground nut, oil seeds, tamarind, turmeric, red chillies and coconut.
There are 27 market committees in Tamil Nadu under which 284 regulated markets are functioning. For movement of notified agricultural products, the market fee has to be paid, a permit obtained from the concerned regulated market and it should accompany the consignment.
This cumbersome procedure of getting permits, that too during odd hours, when the officers are not available, harassment by the enforcement officials en-route, and rampant corruption prevailing are very much affecting the farmers and traders and hence there’s an opposition to this levy. Therefore, the state government should not allow it to continue, S Rethinavelu, president of AATC, Madurai said on Monday.
The market fee on agricultural produce, which was introduced long back in 1933, is not relevant under the present progressive taxation system. Most of the agricultural products and their value-added products are taxed under Goods and Services Tax (GST).
So, continuing the market fee amounts to double taxation causing a burden. The GST collection for the state government during the financial year 2023-24 was Rs 1,21,329 crore, which was Rs 17,000 crore higher than that of the previous year. In such a situation, the Chamber requested the government to favorably consider whether this controversial market fee should be continued, which is fetching only annual revenue of less than Rs150 crore to the state exchequer.
Citing these, he requested the Chief Minister to positively announce the ensuing agri budget withdrawing the levy of market fees on agri products to make the farmers and traders rejoice. All political parties also sought to extend their support to this demand.
