The flour mills in Chandigarh are peeved over the policies being practised by the local authorities that are affecting the industry in Chandigarh.
The flour mills in Chandigarh rue that with ‘purchase tax’ being levied in Chandigarh on the flour mills, it was impacting there growth. The six flour mills in Chandigarh that are running at 25 per cent capacity maintained that imposition of purchase tax was weighing heavy on minds of the flour mill owners.
Proprietor of Chandigarh Roller Flour Mills, Vinod Mittal, maintained that with flour mills in Chandigarh being levied 4 per cent purchase tax, it was making life tough for the flour mills in Chandigarh.
Mittal added that most of the states in India that basically were non producer of wheat did not levy any purchase tax on the flour mills and it was strange that tax was being levied in Chandigarh.
Despite being in proximity to Punjab and Haryana that adds 90 per cent of wheat to the central pool, flour mills in Chandigarh are unable to purchase wheat from these states and usually have to purchase wheat from other states that are exempted from tax.
As against the total milling capacity of six mills, that is 800 tonnes per day, flour mills in Chandigarh are able to mill 200 tonnes per day, which is around 25 per cent of the total capacity of mills.
Mittal added that apart from less availability of wheat the flour mills in Chandigarh were also concerned over the decreased allocation of wheat to Chandigarh under Public Distribution Scheme (PDS).
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Under PDS scheme the essential commodities like wheat, rice, sugar and kerosene are sold to consumers through Fair Price Shops at affordable prices.
The total allocation to Chandigarh under PDS has been reduced to 1,800 MT from 3,000 MT. The quantity of allocation to Chandigarh was reduced to 1,800 MT three years back, citing reasons of non-utilisation of wheat.
Mittal, however, maintained that the government should increase the allocation of quota under PDS that not only would help the flour mills in Chandigarh but also many people in the city could get benefited from the same, as wheat would be available at subsidised rates, compared to open market rates.