States to seek tax exemption for APMCs

BANGALORE: The Agriculture Marketing ministers of all states will urge the Centre to exempt Agriculture Produce Marketing Committees (APMCs) and Marketing Boards (MBs) from income tax, Maharashtra Agriculture Marketing Minister Harshavardhana Patil said on Saturday.
Speaking to reporters during his two-day visit to Bangalore, Patil said the Centre has announced imposition of 30 per cent tax on the total income of APMCs and MBs-a blow to farmers as well as the markets.''''APMCs and MBs are service-oriented and not profit-making organisations. There is no logic in bringing them under the tax net,'''' he added.
Underscoring the need for effective, farmer-friendly marketing system for agricultural and horticultural produces, Patil said Maharashtra and Karnataka will work in cooperation to achieve the objective. ''''Many good schemes of Karnataka such as corpus fund for market intervention, farmers insurance, ryot bazaar and housing for hamals will be incorporated in Maharashtra''s Agricultural Marketing Board system.''''
Patil, who surveyed the National Dairy Development Board (NDDB)''s several projects in Bangalore, said a Rs 750 crore terminal market of NDDB will be set up in Mumbai soon. The Maharashtra government has sought a World Bank loan of Rs 1,400 crore for system and infrastructure improvement in marketing boards.