Big cos may prefer MP, Rajasthan to Punjab for wheat lifting
Big companies may prefer other states such as Madhya Pradesh, Rajasthan to Punjab for wheat lifting as it is much cheaper for them to procure it in these states.
By PTI |
CHANDIGARH: Big companies may prefer other states such as Madhya Pradesh, Rajasthan to Punjab for wheat lifting as it is much cheaper for them to procure it in these states, wheat traders said.
Even as Food and Agriculture Minister Sharad Pawar clarified there was no ban on private companies for lifting wheat from Punjab, big companies may avoid the state for wheat lifting, in view of high cost involved during the ongoing rabi marketing season, wheat traders said.
"It is not profitable for big corporates to procure wheat from Punjab as it is much cheaper for them to lift wheat from other states such as Rajasthan and Madhya Pradesh," said Raj Sood, Punjab-based wheat trader.
Pawar, on April 7, had categorically stated the government had not imposed any ban on private companies procuring wheat from the state.
Sood said that besides paying 12.5 per cent state levies including market fee, rural development fund and commission among others, the companies would have to bear higher transportation charges for transporting wheat to southern states.
Citing an example, he said, "if wheat is procured at Rs 1,010 per quintal, then the actual cost of wheat is worked out at Rs 1,170 per quintal after adding taxes and other levies in Punjab whereas a company will have pay just Rs. 1,140 per quintal in Rajasthan."
"In such a situation, why a company will enter Punjab market," questioned Sood who is also representative of Cargill and Glencore.
Last year, corporates also stayed away from Punjab and bought wheat from other states because of the same reason, he said.
Even as Food and Agriculture Minister Sharad Pawar clarified there was no ban on private companies for lifting wheat from Punjab, big companies may avoid the state for wheat lifting, in view of high cost involved during the ongoing rabi marketing season, wheat traders said.
"It is not profitable for big corporates to procure wheat from Punjab as it is much cheaper for them to lift wheat from other states such as Rajasthan and Madhya Pradesh," said Raj Sood, Punjab-based wheat trader.
Pawar, on April 7, had categorically stated the government had not imposed any ban on private companies procuring wheat from the state.
Sood said that besides paying 12.5 per cent state levies including market fee, rural development fund and commission among others, the companies would have to bear higher transportation charges for transporting wheat to southern states.
Citing an example, he said, "if wheat is procured at Rs 1,010 per quintal, then the actual cost of wheat is worked out at Rs 1,170 per quintal after adding taxes and other levies in Punjab whereas a company will have pay just Rs. 1,140 per quintal in Rajasthan."
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"In such a situation, why a company will enter Punjab market," questioned Sood who is also representative of Cargill and Glencore.
Last year, corporates also stayed away from Punjab and bought wheat from other states because of the same reason, he said.
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