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The Hindu
The Hindu
National
Special Correspondent

Market cess in regulated markets would not affect farmers, contends Minister

Rejecting claims by AIADMK coordinator O. Panneerselvam that the inclusion of more agricultural produces in Annexure-I of the Tamil Nadu Agricultural Produce Marketing (Regulation) Act, 1987, to levy a market cess of 1% would affect traders and farmers, Minister for Agriculture and Farmers Welfare M.R.K. Panneerselvam on Tuesday maintained that the move would indeed benefit them.

“Due to this action of the government, farmers would be able to take their agriculture produce to any of the regulated markets across the State for appropriate price. Moreover, it would help farmers develop interest in marketing their agriculture produce. This would further ensure that farmers get more price for their produce,” the Minister said in a statement.

The levy of 1% market cess was not new and has been in practice for long, he said and further recalled that it had been collected both during the AIADMK and DMK regimes. Unlike in Maharashtra, Punjab and Haryana, farmers were free to choose whether to market their produce in regulated markets or in open markets, the Minister said.

The AIADMK coordinator had contended that the levy of 1% market cess on new items of agricultural produce in regulated markets would affect traders and farmers and further urged Chief Minister M.K. Stalin not to go ahead with such a move. The AIADMK leader had insisted that the same should not be levied on transactions outside the regulated markets too.

In Tamil Nadu, 284 regulated markets are functioning under 27 market committees to enforce the provisions of Tamil Nadu Agricultural Produce Marketing (Regulation) Act 1987. Each committee has its own notified area for the purchase and sale of notified agricultural produce and 1% of the sale value of the produce is collected as market cess from traders.

In a government gazette dated May 25, the Agriculture and Farmers’ Welfare Department included cereals, pulses, oil seeds, fibres, including coconut coir, tubers, condiments and spices, besides sugarcane jaggery in all forms, raw rubber in all forms, silk cotton in all forms and coconut in all forms except tender coconut have been included in Annexure-I of the Tamil Nadu Agricultural Produce Marketing (Regulation) Act, 1987.

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