Punjab Millers not to purchase basmati for 2 days on market fee hike.

Upset over 1% hike each in market fee and rural development fund (RDF) charges, the Punjab Basmati Rice Millers Association (PBRMA) has decided not to make purchases of the aromatic crop on Wednesday and Thursday. The market fee and RDF now has been increased to 3% each. Basmati varieties- Pusa 1121, Pusa 1509, 1401, Sunanghi and Sharbati — have been sown in over 4.51 lakh hectares in the state this season. Millers said nearly 20 lakh tonnes basmati was expected to reach mandis and at an average price of Rs 3,000 per quintal, the crop would fetch nearly Rs 6,000 crore. The increase in fees, millers have to pay approximately Rs 120 crore more in taxes and would be forced to realise the money from the farmers. PBRMA president Bal Krishan and general secretary Aashish Kathuria said, “Punjab government has meted out injustice with basmati millers and farmers by increasing market fee and RDF fee. In neighbouring Haryana, millers have to pay 2% each as market fee and RDF fee and in Rajasthan there is only 1.6% market fee and no RDF. By paying more taxes we can never compete with millers of other states and have decided not to make any purchases on October 4 and 5 in protest against hike in taxes.