Agriculture Ministry in talks with Arun Jaitley on inter-state taxes

NEW DELHI: The Agriculture Ministry is in talks with the Finance Minister over the issues related to inter-state taxes on farm produce for smooth implementation of an online national agri-market.

The issue assumes importance in view of the pending GST (Goods and Services Tax) Bill, which aims to facilitate an uniform tax levied on goods and services across the country.

"We are speeding up the work for setting up an online agriculture market. There are concerns related to inter-state taxes and levies. We are discussing with the Finance Minister on these issues," Agriculture Minister Radha Mohan Singh said at an Assocham event here.

Sharing details on the sidelines, the minister said the inter-state levies charged on movement of farm produce need to be addressed for efficient functioning of a common e-agriculture market.

The government is working towards integrating 200 mandis by March-end, another 200 will be connected to the online platform in 2017 and the rest by 2018, he said.

The Centre has received proposals from states like Karnataka, Gujarat, Telangana and Maharashtra for developing necessary infrastructure in wholesale markets. A strategic partner for implementing the national agri e-market has also been identified, he added.

The online national agri-market is the need of the hour as farmers are deprived of fair share of prices because of the current mandi system, which is characterised by inefficient physical operations, excessive crowding of intermediaries, fragmented market chains and low scale.

In July 2015, the Cabinet had approved setting up of an online national agriculture market with a budget of Rs 200 crore. The platform seeks to integrate 585 wholesale markets across India with an aim to provide more options to farmers to sell their produce.

On farmers' participation in commodity futures market, the minister said they are not in a position to participate because most farmers do have enough marketable surplus and ready cash to meet the margin requirements.

"Therefore, while the commodity exchange must be strengthened and developed, the physical market should undergo major transformation first as the fundamentals have to be sound. Only then will farmers be empowered to participate and benefit from the commodity exchanges," he said.