Farmers and rice millers in Tamil Nadu are urging the government to waive the agricultural market fee on key commodities like paddy and cotton to ease financial pressures amid rising production costs.
Farmers and rice millers have called for the waiver of the agricultural market fee levied on notified commodities such as paddy, cotton, turmeric, and oil seeds at the state's 260 regulated markets. This fee, ranging from 1% to 2.5%, adds to the burdens faced by producers dealing with high input costs, unseasonal rains, and market fluctuations.
R. Muralimohan, secretary of the Chengalpattu District Farmers Association, emphasized the need for relief, stating, “This will be a move in favour of the farmers, consumers, and traders. Farmers are already burdened by the climbing costs of production. Most times we run at a loss due to unseasonal rains and the vagaries of nature. This fee must be waived.”
P.R. Pandian, general secretary of the Tamizhaga Cauvery Farmers Association, criticized the marketing committees for failing to ensure fair prices, noting that only 48 commodities are notified while others like tomatoes and mangoes are often discarded due to low returns. He said the fee's intent is positive but ineffective in practice.
Rice mill owners, represented by A.C. Mohan of the Federation of Tamil Nadu Rice Mill Owners and Paddy Rice Traders Association, highlighted issues with fee collection outside official premises. He cited a recent raid on 10 mills in Vellore district, where millers were forced to pay fees and penalties on interstate paddy already taxed elsewhere. Mohan argued that fees should not apply to commodities not grown locally.
A farmer from Kancheepuram pointed out that neighboring Karnataka has already waived the fee and lamented the lack of infrastructure like warehouses and cold storage, despite collections meant for farmers' welfare.