Punjab sees 14.51% rise in market fee mop-up

Thanks to the record arrival of paddy in the mandis of the state coupled with rise in minimum support price (MSP), the Punjab mandi board has recorded 14.51 per cent increase in the collection of market fees (excluding RDF).

Further, the mandi board expects that by the end of this fiscal year, there would be at least 20 per cent increase in market fees.

The state mandi board has collected Rs. 359.46 crore as market fees during the period (April 1, 2007-November 30; 2007-April 1, 2007) while, during the corresponding period last year it had collected Rs 313.91 crore.

Speaking to Business Standard, Mandi Board, Chairman Ajmer Singh Lakhowal said,"We have witnessed 14.51 per cent increase in market fees as compared to corresponding period last year. There are three factors responsible for this growth. Firstly, there has been record arrival of paddy in the state despite the fact the area under cultivation decreased by 1.75 per cent."

This year, the total arrival of paddy up to November 30, 2007 in different mandis of the state was to the tune of 14.067 million tonne while during the corresponding period last year it was 13.444 million tonne.

Thus, it witnessed an increase of 623,000 tonne as compared to the last year. The state government has set up 1,544 procurement centres and activated its total machinery to ensure smooth procurement of paddy.

Further the arrival of wheat up to (October 31, 2007) was 7.946 million tonnes while, during the corresponding period last year it was 8.056 million tonne.

He added, "Secondly, we had launched surprise checks on the traders who were evading mandi fees. We have identified some defaulters and a penalty of Rs 8-10 crore has been imposed. Thirdly, the hike in MSP of paddy and wheat was also one of the factor. Last year, the MSP of Paddy was Rs 620 (including a bonus of Rs 40) for common variety and this year it was Rs 695 for common variety and Rs 725 for the super fine grade 'A' variety (including a bonus of Rs 50).

"While this procurement season the MSP of wheat (including bonus of Rs 100) was Rs 850. It is worth noting that market fees is charged at 2 per cent and charged on MSP of the commodity."

Further, in mid November the Centre had announced the MSP for common variety of paddy as Rs 745 per quintal and for grade 'A' as Rs 775.