The State Government has decided to constitute a State-level purchase committee for the procurement of pulses in view of the ongoing strike by the Federation of All-Odisha Traders’ Associations (FAOTA) since April 9. The FAOTA has stopped import of pulses, wheat and wheat products demanding waiver of five percent VAT presently being levied on these products.
The Government has drawn a two-month action plan to meet the situation arising out of the strike, said an official. A high-level meeting held under chairmanship of Food Supplies and Consumer Welfare Minister Sanjay Dasburma at the State Secretariat on Saturday decided to float tenders for procurement of 10,000 tonnes of pulses in the first phase. The procured pulses would be available at 20,000 fair price shops across the State.
All district Collectors have been alerted against black marketing of pulses and directed to take action against hoarders, if found any, said the official. On the other hand, the FAOTA at its steering committee meeting held here on Sunday decided to continue with its agitation. Functionaries, however, said there is no problem to hold talks with the Government on the matter.
While along with Dasburma appealing to the traders to withdraw the strike, Finance Minister Pradip Amat on Saturday said the trader body’s proposal for levying of 1 per cent entry tax in lieu of 5 per cent VAT is not possible now. Stating that there was no Entry Tax on agriculture produces in Odisha at present, Amat said the constitutional validity of the Entry Tax is now pending before the Supreme Court and the State has filed an affidavit to maintain status-quo.
“On the recommendation of an Empowered Committee, five per cent VAT is being levied from April 1, 2012. Neighbouring states like West Bengal, Jharkhand and Chhattisgarh have not implemented the recommendation of the Empowered Committee and exempted dal, pulses and wheat products, which resulted in the alleged trade diversion,” Amat clarified.