UP cuts mandi tax by 1%; farmers, traders to get relief

By: |
November 7, 2020 9:17 AM

According to officials of the agriculture department, the move would encourage farmers and traders to trade within the mandis.

Issuing directives in this regard, the government stated that henceforth, for trading within the mandis, farmers will have to pay 1.5% fees as against 2.5%, which includes 0.5% as development charges. (Representational image)

Bringing relief to farmers and agricultural traders, the Uttar Pradesh government has announced a reduction in mandi tax from the earlier 2-1%. Issuing directives in this regard, the government stated that henceforth, for trading within the mandis, farmers will have to pay 1.5% fees as against 2.5%, which includes 0.5% as development charges.
According to officials of the agriculture department, the move would encourage farmers and traders to trade within the mandis.

“The main objective behind this step was to make the mandis competitive. Earlier, mandis were considered as a source of revenue. The focus was more on revenue collection, than providing a better market to the farmers. But with trade opening up, it was important to make the mandis sustainable as well as competitive. A balance has been achieved by keeping the mandi tax at 1% and development cess as 0.5%.

This revenue will help mandis sustain themselves and also attract farmers and traders who were thinking of moving outside, as the amount is not too big, considering the type of advantages that the mandis give,” said additional chief secretary, agriculture Devesh Chaturvedi.

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