The Federation of Tamil Nadu Rice Mill Owners and Paddy Rice Dealers Association on Tuesday urged the State government to reduce fixed charges levied on rice mills by Tangedco.
Federation president D. Thulasingam said that these charges have to borne by the mills even if they are idle. “Our businesses are seasonal and most mills have work only for six months a year. For small-sized mills, the charges work out to ₹15,000 per billing cycle and ₹60,000 for larger mills. This is being added to the price of rice. Reduction of these charges would help bring down the price of rice,” he said.
Federation secretary A. C. Mohan said that reduction of Goods and Services Tax on pre-packed and pre-labled rice upto 25kg should be waived off. “Earlier, this 5% GST was charged on branded rice only. But the 47th GST council meeting imposed this tax on smaller bags, which is also another reason for increasing prices of rice. Ordinary people buy rice in small quantities. They are being unnecessarily charged with GST,” he said.
