Punjab government announces waiver of RDF, market fee on Basmati

CHANDIGARH: The Punjab government today decided to waive off Rural Development Fee (RDF) and market fee on Basmati variety of paddy in the state.

The nod in this regard was given by Chief Minister Parkash Singh Badal, a government spokesperson said.

The decision is likely to boost Basmati cultivation by extending a benefit of nearly Rs 200 crore to its trade in the state, the spokesperson added.

"The main objective of providing these exemptions to rice millers and exporters by the state government under the diversification plan was to make Basmati milling competitive so that the Basmati produce of farmers was lifted at remunerative prices," he said.

As a result, the state would be able to increase area under Basmati cultivation, conserve depleting underground water level besides motivating the farmers to shift to Basmati cultivation, which is a far less water intensive crop than normal paddy, he added.

This decision was taken following a series of deliberations between the Punjab Rice Millers & Export Association and the Chief Minister.

The Rural Development Fee (RDF) and market fee of 2 per cent each was being charged on Basmati crop.