Lok Sabha Question No. 2229 (UNSTARRED), answered on 2016-11-29
Subject: Taxes on Essential Items
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: AJAY (TENI) MISRA

## Government of India Department of Consumer Affairs

## ORIGINAL IN HINDI

## Ministry of Consumer Affairs, Food and Public Distribution

## LOK SABHA UNSTARRED QUESTION NO.2229

TO BE ANSWERED ON 29.11.2016

## TAXES ON ESSENTIAL ITEMS

2229.  SHRI AJAY MISRA TENI: (OIH)

## Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) whether  the  Government  has  asked  State  Governments  to  exempt  local  taxes  on essential food items, pulses and edible oils and exclude these from APMC to provide these items at reasonable prices to consumers and if so, the details thereof;
- (b) whether the Government has expected the State Governments to exclude pulses, edible oils  and  other  essential  commodities  from  Agriculture  Produce  Marketing  Committee (APMC)  Act  by  interfering  in  the  food  items  market  and  reviewing  Agricultural Produce Marketing Committee Act and if so, the details thereof;
- (c) whether  the  availability  of  essential  commodities  would  be  ensured  at  fair  prices  to consumers along with profit to farmers with facility of selling these produce anywhere and if so, the details thereof?

## ANSWER

## miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k jkT; ea=h ¼Jh lh vkj pkS/kjh½

## THE MINISTER OF STATE CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI C. R. CHAUDHARY)

- (a)  &  (b)  :    In  order  to  reduce  the  price  gap  between  producers  and  consumers  through reduction in intermediation of supply chain, create alternative marketing channels and promote investment on development of marketing infrastructure with private sector participation, States have  been  asked  to  deregulate  marketing  of  fruits  and  vegetables  outside  the  Agricultural Produce Market Committee (APMC) yards.

So far, 14 States have deregulated fruits and vegetables from APMC Acts, though in different models.  Statement containing the State-wise details is at Annexure .

- (c) :  Yes  Madam.  Since,  the  measure  is  intended  to  reduce  supply  chain    and  create competition in marketing of fruits and vegetables, therefore, it has inherent potential to make available these food items to consumers' at reasonable prices along with to enhance farmers' profit with their open choice of selling to anybody , anywhere, wherever get the better prices.

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STATEMENT  REFERRED  IN  REPLY  TO  PARTS  (a)  &  (b)  OF  LOK  SABHA UNSTARRED  QUESTION  NO.2229  FOR  29.11.2016  REGARDING  TAXES  ON ESSENTIAL ITEMS.

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## Statement containing Status of de-notification of fruits and vegetables

1. Madhya Pradesh -State by amendment of the Principal Act, agriculture produce notified in  Part  VII  &  VIII  of  the  Schedule  (fruits  and  vegetables)  ,  except  banana,  which  is purchased or sold outside the notified market yard, has  put outside the ambit of market regulations.
2. Nagaland - State has exempted collection of market fee on all horticultural commodities.
3. Karnataka -  State  has  provided  that  no  market  fee  is  leviable  on  flowers,  fruits  and vegetables.  Instead, the Market Committee may collect user charges in respect of above articles.
4. AssamState has cancelled fruits and vegetables from the relevant Schedule of the Act.
5. Himachal  Pradesh -  State  has  exempted  mandi  fee  on  all  fruits  and  vegetables  except Apple. Instead, service charge imposed.
6. Haryana State has reduced market fees on all fruits and vegetables to 0%.
7. Delhi - U.T. has ceased the regulation of fruits and vegetables outside redefined market yard/ sub-yard area of APMC, MNI, Azadpur, APMC, Keshopur and APMC Shahdara.
8. Meghalaya -  State  has  amended  schedule  to  the  Act  and  omitted  fruits  and  vegetables (except Potato) from its Schedule.
9. West Bengal State has exempted the market fee on fruits & vegetables.
10. Odisha -  State  has  excluded  the  agricultural  produce,  namely,  fruits  and  vegetables  in relation to the market areas of al Regulated Market Committees (RMCs) in the State.
11. Rajasthan State has exempted the market fee on fruits & vegetables.  Instead, State has imposed user charge on fruits and vegetables.
12. Chhattisgarh State has exempted the market fee on fruits & vegetables.
13. Gujarat -  State  has  exempted the market fee on fruits & vegetables.  Instead, State has imposed user charge on fruits and vegetables.
14. Maharashtra State  through  promulgation  of  an  ordinance  provided  that  marketing  of Fruits  and  Vegetables  and  condiments,  spices  and  others  (ginger,  garlic,  coriander  and chillies)  by  any  person  outside  the  market,  shall  not  require  any  license  or  permission. Marketing of above agricultural produces shall not be regulated by Market Committee.

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