HPMA Protest on Mandi Tax

JK BIHANI, President HPMA, Stronly opposes applicability of Mandi Tax

The Government of India has passed 2020 Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance, on 05.06.2020, whereby the farmer can sell their Agricultural produce even outside the mandis and do not have to pay any market fees and HRDF on this sale.

The worthy Chief Administration, HSAM Board, Panchkula vide Memo No ME-1/2020/9522-9634 dated 20-08-2020 has clarified that the “farmer’s produce” as defined in Farmer’s Produce Trade and Commerce) Promotion and Facilitation) Ordinance, 2020 does not include any forestry produce such as Timber i.e. Eucalyptus and Poplar.
Hence in view of above, it is directed to all the timber traders/Aartiyas dealing with plywood to deposit the due amount of Market Fees on Eucalyptus and Poplar @2% on ad valorem basis as was paid before promulgation of this ordinance.

HARYANA PLYWOOD MANUFACTURERS ASSOCIATION (HPMA) has strongly protested the above orders in which J.K. BIHANI (President) on 21.08.2020 has mentioned/argued the following points.

1. Eucalyptus and Poplar are specified under scheduled list of The Haryana Agricultural Produce Markets (The Punjab) Act 1961. These products are grown and brought by farmers/traders for sale in a trade area. These are agricultural produce.
2. Section 2(j) defines the “scheduled farmers’ produce” means the agricultural produce specified under any State APMC Act for regulation.
3. Section 6 of the ordinance no. 10/2020 exempts “scheduled farmers’ produce” from levy of any fees, cess or levy for trade and commerce in a trade area (which is the area outside the physical walls of a notified Mandi/Market).
4. Please take only the plain meaning of section of the ordinance. There is no ambiguity about the provisions of the ordinance. Any other view of arbitrary and not as per provisions of the sections of the ordinance. Market fees is not applicable in view of above legal provisions.