Chandigarh:  Bulk crop buyers, including flour mills in Punjab and Haryana, will have to pay more to buy wheat under Open Market Sale Scheme (OMSS).
The Centre has allocated 54,000 tonne and 25,000 tonne of wheat under OMSS for Punjab and Haryana, respectively, for the period September-October.
"Though the final rate at which wheat will be released to bulk buyers is yet to be finalised, the buyers this time will have to pay market fee, rural development fund, Arthiya's commission, infrastructure cess and VAT," a senior official of Food Corporation of India (Punjab) said.

"We will be issuing tenders for releasing wheat in one or two days," he said.
Punjab levies 2 percent market fee, 2 percent rural development fund, 3 per cent infrastructure cess, 2.5 Arthiya's commission and 5 percent Value Added Tax (VAT) on wheat.
In Haryana, 2 percent market fee, 2 percent rural development fund, 2.5 percent Arthiya's commission and 5 percent VAT are imposed on purchase of wheat.
After factoring in all the levies and taxes, the rate for buying wheat under OMSS is set to cross Rs 1,400 a quintal, official said. However, flour millers have put this figure to cross Rs 1,500 a quintal mark.
The Union Food Ministry charged Rs 1,285 per quintal plus VAT from bulk buyers when it release crop for July-September.     

The decision of the Union Food Ministry to charge all types of levies and taxes on wheat has left the flour mills in Punjab and Haryana upset as they termed this decision as unjustified which would have serious implications on trade and price of wheat based items.
"It is a sheer injustice with wheat producing states like Punjab and Haryana by asking to pay 14.5 percent of taxes and levies on wheat," Punjab Roller Flour Mill Association President Naresh Ghai said.


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