Taking a leap forward to kick start the much-needed crop diversification program in the State, Punjab Chief Minister Parkash Singh Badal on Wednesday announced to provide an assured marketing mechanism coupled with better remunerative price to the basmati growers in the State.
Besides, Badal also announced the exemption of two per cent Rural Development Fund (RDF), three per cent Punjab Infrastructure Development Fund (PIDF) and two per cent market fee on Basmati and its different varieties under the new diversification policy.
The decisions were taken during a meeting with a deputation of Punjab Rice Millers and Export Association at Chief Minister’s residence, attended by Deputy Chief Minister Sukhbir Badal and State Food and Civil Supply Minister Adaish Partap Singh Kairon.
Badal, during the meeting, called upon the Rice millers and exporters to play a proactive role for motivating the farmers for Basmati cultivation to enhance their income on one hand and achieving the target to bring 10 lakh hectare of land under Basmati cultivation in next three years on the other.
To provide an assured market mechanism and better remunerative price to basmati growers, Badal constituted a panel headed by the Punjab Farmers’ Commission chairman including the representatives of the Basmati growers, rice millers and exporters to fix an assured price of Basmati every year well before its plantation.
Exempting RDF, PIDF, and market fee, Badal said that this would boost Basmati cultivation by extending a benefit of Rs200 crore to the basmati trade in the State.
Badal categorically said that the main objective of providing these exemptions by the State Government to the rice millers and exporters under diversification plan was to make Basmati milling competitive so that farmers’ Basmati produce was lifted by them at remunerative prices.
With this, the State would be able to increase area under Basmati cultivation, conserve its depleting underground water resource, besides motivating the farmers to shift from paddy cultivation to Basmati, which was a far less water intensive crop then paddy, he added.
Chief Minister also said that exemptions would be given only to those transactions which took place on the assured price.
He further asked the millers that in order to avail all the benefits they must ensure timely payments to the farmers for their produce.
On the demand of association, Badal also agreed to work out the modalities for levying purchase tax on Basmati varieties at the second stage at par with the oilseeds pulses etc. instead of present schedule.