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High tax on cattle feed forces Punjab farmers to buy from other states

Value-added tax on feed in the state is 6.5% against 2% in Haryana, zero in Rajasthan

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Komal Amit Gera Chandigarh
Last Updated : Jan 13 2015 | 10:24 PM IST
High tax on cattle feed manufacturing in Punjab is forcing farmers to buy feed from neighbouring states. According to manufacturers here, the value added tax on cattle feed is 6.5 per cent as compared to 2 per cent in Haryana and a zero tax in Rajasthan.

Punjab has an extensive network of dairy farms and close to six lakh dairy farms in the state. The total number of milk yielding cattle in the state in estimated to be approximately 25 lakh.

The high tax affects sales of cattle feed manufacturers. It also escalates the cost of animal rearing for farmers, most of whom are on the fringes.

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According to Tej Singh, a farmer from village Chhanuwala in district Moga of Punjab, cattle breeders are in trouble.

He said: "We cannot afford to purchase a truckload of feed so we have to depend on the intermediaries or traders. They exploit us by providing a cheap quality and spurious feed which is harmful to our animals."

Singh added the traders reuse the bags of branded cattle feed and refill it with spurious cattle feed and quote it at higher price.

Soybean and mustard are sown in lower acreage in Punjab so the soybean and mustard cakes are to be procured from other states. However, other ingredients can be picked up from local markets if the prices are competitive.

Parminder Singh, assistant professor, Guru Angad Dev University of Veterinary Science Ludhiana, said the average yield of cow in Punjab is 18 litres per day and that of buffalo is 10 litres per day.

This can increase substantially if farmers are encouraged to feed their stock with good quality cattle feed.

The better quality of feed can increase quantity and quality of milk.

He endorsed an average farmer tries to feed his cattle on leftovers and it may help the farmers if cattle feed prices are slashed. A cattle feed manufacturer from Muktsar told dairy is a big industry in Punjab and rationalisation of tax will help it to flourish as the cattle feed has a direct impact on milk production.

Higher yield might ensure famers' prosperity and save them from committing suicide.

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First Published: Jan 13 2015 | 8:10 PM IST

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