Soya crushers demand seasonal industry status

Soya crushers and edible oil producers have demanded 'seasonal industry' status from the state government, and inclusion of the provisions in the forthcoming Industry and Employment Policy.

Sopa, the apex body of soya crushing and exporting units, has submitted a memorandum to the state chief minister demanding a cut in Mandi tax, which is highest in any Indian state, and a waiver from minimum power charges during non-operational days, i.e. from October to March.

Sopa has submitted the memorandum to the sub-committee, which is considering the demands of the industry for making amendments to the Industrial Promotion Policy 2004 and relaunching it as the Industrial and Employment Promotion Policy 2006.

"We have been asking the government to give soyabean crushing a seasonal status since a long time. Other states like Maharashtra have similar provisions for sugar industry. Our crushing units, with a combined business of Rs 6,000 crore, have to pay minimum charges to the Madhya Pradesh State Electricity Board. I hope the state government will take some positive decision in this regard," Sopa Chairman Sopa Rajesh Agrawal told Business Standard.

Sopa has also demanded reduction in Mandi tax, from the current 2.2 per cent to 1 per cent, the rate levied in other states.

The state government has also amended the licensing system of mandis by putting a cap of one lakh tonne mandatory purchase for soya industry if a soya unit purchases soyabean in the state outside mandis.

However, fees and bank guarantee provisions are yet to be rationalised.

Sopa has also pointed out that the Madhya Pradesh Pollution Control Board (MPPCB) issues notices to soya crushing and edible oil-producing units in accordance with the 1999 Act against the production of hazardous wastes. As a solution to this problem, the board has asked Soya crushing and edible oil units to create hazardous waste site privately.

"We have informed the government that soya units do not produce hazardous wastes to the limit which may be considered toxic or polluting. We have requested the state government to exempt soya units from this Act," Agrawal said.