State to lose Rs 3K crore as Centre cuts grain procurement fees
Ruchika M Khanna
Chandigarh, February 20
Punjab stands to lose over Rs 3,000 crore each year because the Centre has directed the state authorities to limit the statutory fees imposed on foodgrain procurement to only 2 per cent of the minimal help value (MSP). The executive fees for meals procurement have additionally been lowered from 2.5 per cent to 1 per cent.
Union Minister for Client Affairs, Meals and Public Distribution Piyush Goyal in a letter has requested Chief Minister Bhagwant Mann to direct officers “… to limit the statutory fees as much as 2 per cent of the MSP, for the reason that foodgrain is procured for distribution among the many poor and weak sections of society below the NFSA and different welfare schemes. This rationalisation is not going to solely cut back the subsidy burden on the exchequer, but in addition encourage non-public gamers to obtain foodgrain from the state, which can finally profit farmers.”
Which means the state authorities should cease charging the three per cent Rural Improvement Fund and three per cent of market price and as an alternative cost 2 per cent as statutory fees. With this, the practically Rs 3,960 crore collected as taxes on procurement of wheat and paddy earlier, will now be lowered to Rs 1,320 crore. The discount will result in a lack of one other Rs 550 crore, placing an enormous pressure on the fiscal well being of the state procurement businesses.
The letter, a duplicate of which is with The Tribune, additionally states that the Centre is contemplating the discharge of earlier dues of the RDF in session with different stakeholders. The RDF dues of Rs 2,880 crore are nonetheless pending with the Authorities of India for the previous three procurement seasons.