The Hindu Business Line : Grain merchants seek clear norms for levy of market cess

Madurai March 21 The Tamilnadu Foodgrains Merchants Association has sought an early solution to the problems faced by the traders and the general public due to the imposition of market cess under the Tamilnadu Agriculture Produce Marketing (Regulation) Act 1987.

The Act lacks in clarity of norms for the levy and collection of cess and the traders are put to lot of difficulties. There is a definite need for a review though the Act has been brought forward to enable the farmers to get a fair price, said Mr P. Subash Chandra Bose, Secretary of the association, at a press meet here recently.

Under the Act, the Market Committee is empowered to levy a cess of one per cent on transactions effected over notified agri-produce or in a notified market area for the services provided by the Market Committee to the producers on the first point of sale from the producer to a trader.

However, the Act does not clearly provide the norms for the determination of the produce or the area, he pointed out.

As such, in practice, the cess is collected for transactions by traders outside the regulated market area and for goods brought from outside the State too. Further, it is to be levied only on agricultural produce and not on by-products further processed. However, this is not followed and cess is levied even on goods processed by the mills. Tamil Nadu depends on northern States for consumption of pulses and cereals, as local production is inadequate.

Sometimes, these are imported even from abroad. The levy of market cess without norms is hurting the traders very much. It should be effected only for the transactions in the market area established for the purpose by the Agriculture Market Committee. Representations have been made to the State Government on the anomaly seeking a solution, he said.

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