"UP is a major 'gulkand' manufacturing state with Kannauj leading the way. Gulkand has medicinal values and the decision to make it tax-free will give a major boost to the industry in the state," said Amit, a leading retailer in Lucknow.
An expert said that Kannauj itself accounted for manufacture of around Rs 300 crore-worth 'gulkand', which is famous not only in India, but off shore as well.
"The tax exemption will reduce cost of meetha paan," said Monu, a 'paan' retailer.
'Gulkand', which adds flavour in 'paan' (preparation combining betel leaf, tobacco and nuts), was recently exempted from Value Added Tax (VAT) by the Uttar Pradesh government.
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The decision was taken at a Cabinet meeting chaired by Chief Minister Akhilesh Yadav.
"With this decision of the UP government, we will compete in the market," Anoop Kelkar, a prominent trader, said.
"Gulkand in Kannauj is prepared from local breed of rose which is admired all over. It is much in demand in Maharashtra, Rajasthan, Madhya Pradesh, Karnataka and Andhra Pradesh. Exempting it from VAT net will have far reaching effects," he said.
It provides remedy for reduction of 'pitta' (bile) and heat in the body. It is also considered to be remedy for eye inflammation and redness. Besides, it strengthens teeth and gums and is good for treatment of acidity.
'Gulkand' has cooling properties, thus it is beneficial in alleviating all heat related problems like fatigue, lethargy, itching, aches and pains. It also helps in reducing burning sensations in soles and palms.
Besides its medicinal value, 'gulkand' is a treat for paan lovers in UP. According to experts, UP is one of the leaders in 'gulkand' production in the country, with Kannauj being a major hub.
An official spokesman said 'gulkand' was manufactured in small scale industry and provided employment to a large number of people.
"Exempting gulkand from VAT will promote those involved in rose farming and small scale industry," he added.