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Centre asks states to waive commerce charge on e-NAM platform

After the three new central legal guidelines that permit barrier-free buying and selling of agriculture commodities throughout the nation, the Centre has been asking states to scale back the mandi tax to 0.5%, in order that the market yards managed by agricultural produce market committees (APMCs) turn out to be aggressive. As a primary step, at the very least the market charges on the digital National Agriculture Market (e-NAM) platform should be decreased, the Centre has advised the states.

“Ideally, there should be no market fees on e-NAM after the new laws. However, since the e-NAMs were created to bring mandis under one platform, the market fees charged by mandis remained payable from its inception. Unless the states agree, the market fees cannot be waived off,” stated a senior official of the agriculture ministry.

Mandi charges and different imposts are levied within the mixture vary of 1-2% in many of the states besides in Punjab, which has 8% (market charge and rural improvement cess 4%, every). Haryana final month decreased the charges to 1% from 6% earlier. Rajasthan has decreased it to 2% from 3% after the Central legal guidelines got here into power and it additionally passes on 0.25% of market charges to farmers in the event that they commerce on e-NAM portal. In many of the states there is no such thing as a market charge on vegatables and fruits and plenty of had delisted these horticulture produce from APMC legal guidelines even earlier than the Central legal guidelines.

Launched by the Centre in 2016, e-NAM is a web-based buying and selling platform for agricultural commodities throughout states. So far, 1,000 mandis throughout 18 states and three Union Territories have been built-in with e-NAM platform.  The turnover of commerce on e-NAM elevated 74% on yr to Rs 30,845 crore throughout FY20. The quantity went up 44% to 77.13 lakh tonne throughout the interval.

Under one of many three central legal guidelines, farmers have the liberty to promote their produce in any market inside and outdoors the state of their residence, with out being hamstrung by the APMCs. No state levies will likely be imposed on commerce exterior the APMC mandis and the farmer is meant to obtain fee inside three working days after deal. According to the brand new legislation, anybody having PAN card can commerce, whereas the Centre reserves the precise to put down any new procedures, together with obligatory prior registration.

As farmer producer organisations (FPOs) are popping out as alternate options to APMC-owned mandis, the Centre can be eager to see that on-line buying and selling platform is developed within the personal sector, significantly by FPOs. Many FPOs in Maharashtra are more and more bypassing mandis to enter into offers with giant personal gamers. To entice extra farmers into their fold, the FPOs are additionally providing extra costs to farmers. For occasion, Jai Sardar FPO in Buldhana district of Maharashtra final month paid Rs 10/quintal bonus to maize farmers, from whom it had purchased the crop, by sharing a few of its revenue.

The APMCs of Maharashtra witnessed the lack of 25-30% of their incomes between June and August this yr as in comparison with their earnings for a similar interval a yr in the past because of decrease arrivals. Uttar Pradesh had collected Rs 172 crore in mandi tax/cess income throughout June-July, a drop of 36% year-on-year. Following the enactment of latest legal guidelines, the mandi arrivals have dropped in seven out of 10 main kharif crops specifically paddy (widespread), jowar, bajra, maize, arhar, moong, urad, soyabean, groundnut and cotton throughout October from the year-ago interval. The falling development continues within the first fortnight of this month and the arrivals dropped in all crops besides groundnut.

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