Badal slashes market fee and RDF on raw cotton

by Punjabnewswire4u (Balbir)
CHANDIGARH SEPT 20
    The Punjab Chief Minister, Mr. Parkash Singh Badal, today approved to slash the market fee and the Rural Development Fee (RDF) on narma and kapas (raw cotton) from 2  to 1 per cent with immediate effect during the cotton procurement season 2010-11 till March 31 next year.
        A decision to this effect was taken by Mr. Badal in a meeting with the deputation of Punjab Cotton Factories and Ginner's Association led by its President Mr. Bhagwan Bansal here at Chief Minister's residence this evening.
            Disclosing this here today a spokesperson of the Punjab Government said that this decision had been taken to safeguard the interests of both the cotton growers and cotton ginning industry.  Besides, this decision would also provide a level playing field to the cotton ginners in the state who were facing unhealthy competition from the cotton industry in other states like Rajasthan, where the market fee on cotton was 0.80 per cent and 1 per cent each in Maharashtra and Gujarat.
            It may be recalled that the state government had already abolished the Punjab Infrastructure Development Cess of 2 per cent levied on the ginning and spinning (composite) units on raw cotton recently during a meeting with the Chief Minister held on August 9, 2010.
            Expressing gratitude to the Chief Minister, the members of the Association assured Mr. Badal that this decision would result in quantum jump in the revenue from VAT and market fee during the current procurement season, which was expected to touch nearly Rs.125 crore on VAT and Rs.80 crore on market fee.  They also apprised the Chief Minister that the bumper cotton crop this year was expected to touch nearly 20 lakh bales as compared to 12.94 lakh bales procured last year.
            The Chief Minister was accompanied by Principal Secretary Mr. DS Guru and Additional Principal Secretary Mr. Gaggandip Singh Brar.  The deputation of Punjab Cotton Factories & Ginner's Association consisted of Mr. Vijay Nagpal (Babbu), Mr. Naresh Bansal from Abohar, Mr. Rajinder Garg from Malout, Mr. Jagdish Kamra, Mr. Janak Raj, Mr. Mohan Lal and Mr. Ashwani from Bathinda