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Haryana cotton ginners not to start ops unless VAT issues sorted

Cotton ginners in Haryana have said they will not to start operations this season unless the Haryana government addresses their grievances regarding refund of VAT and reduction of the market fees. The ginners also want the exclusion of ‘Kutcha arhtiyas’, commission agents in grain markets from purchasing raw cotton from farmers. The ginners, want the market fee plus the Haryana Rural Development Fund (HRDF) on cotton reduced from 4 per cent to 1.6 per cent as was being done since 2011-12 and refund the extra VAT they will have to pay on raw cotton in the wake of the government’s waiver on cottonseed and oilcakes. The government issues a notification for this purpose every year. However, no notification has been issued this year so far, members of the Haryana Cotton Ginners Association rue.

It may be remembered that the National Agriculture Marketing (NAM) initiated by Prime Minister Narendra Modi has a provision for farmers selling their produce directly to millers without the involvement of commission agents.

 
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