March 13, 2015

13/03/2015: Indian CM urges PM to reconsider directive to states on levy rice

India’s Chief Minister, K Chandrasekhar Rao, has asked Prime Minister Narendra Modi to reconsider the Central Government’s recent directive that state governments should not impose any levy on rice from millers with effect from October 1, The New Indian Express reports.

In a letter on Thursday, Rao suggested continuance of the existing 25 percent levy so that farmers would get remunerative prices for certain special varieties and at certain periods when millers have a good market outside the state or country.

The Central Government recently informed the states that with a view to ensuring payment of remunerative prices to farmers at MSP or above and to improve the outreach of the procurement system, it was decided that the states should not impose any levy on rice from millers.

The Chief Minister said Telangana was a paddy-producing state and the practice had been that millers purchase paddy from farmers competing with each other at remunerative rates to deliver the levy.

Read more HERE.

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