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Haryana cuts market fee on cotton by 60pc
Nov '11
With an aim to help cotton growers in the State to make more money and to end diversion of crop to other bordering States, the Haryana government has reduced the rural development fund and market fee on cotton.

While the market fee has already been reduced by 60 percent from 2 percent to 0.80 percent, the State government has agreed to slash the contribution towards rural development fund from 2 percent to 0.80 percent, which is likely to be made effective soon, a top official of the Haryana Agricultural Marketing Board said.

Such reduction in the market fee and rural development fund would bring parity with the rates prevalent in Rajasthan and lesser than that in Punjab, thus dispiriting the cotton growers to sell their produce in bordering States, the official said.

Till recently, Haryana subjected cotton to a levy of two percent rural development fund and two percent market fee, while Punjab and Rajasthan were charging 2 percent and 1.6 percent rural development fund and market fee, respectively.

Welcoming the State government's initiative, Haryana cotton ginners said such reduction in charges would help the cotton growers to earn an extra income of Rs. 100 per quintal at a rate of Rs. 4,000 per quintal.

As market fee and rural development fund charges have been slashed below or made at par with those prevailing in other neighbouring States, the domestic cotton growers would now not go to Punjab or Rajasthan for selling their produce, which would boost arrival of crop in Haryana markets, a senior member of Haryana Cotton Ginners Association said.

However, the ginners stated that cotton arrival in Haryana mandis during the current season will be less than nine million quintals compared to last season's 4.2 million quintals.

The move of reducing the charges has come after continuous demand of cotton ginners for slashing these charges. Around 140 cotton ginners of the State had resorted to open-ended strike during the month of August with the same demand, and had winded up their month-long agitation only after the State Chief Minister assured that their demands would be favourably considered.

Fibre2fashion News Desk - India

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