In line with the recommendation of high level committee of Food Corporation of India, it may not be possible for government of India to impose same taxes on wheat and rice procurement in all the states.
Currently the levy on rice and wheat procurement differs from state to state. According to official data, taxes on rice procurement is 145% in Punjab, it is 125% in Andhra Pradesh, 115% in Haryana and 4.7% in Madhya Pradesh Similarly, taxes on wheat procurement in Punjab is 14 5%, 11.5% in Haryana, 9 2% in Madhya Pradesh and 8.5% in Uttar Pradesh.
Panel structured by P.M Modi for state run FCI has recommended either to lower down the state taxes on wheat and rice by 3% in all states or to include taxes in minimum support prices (MSP) of these two grains. But the state governments are not ready either to cut down taxes by 3% or to include taxes and commissions in MSP.
The government of India, in its third advance estimates for major crops, has estimated India’s rice production for 201 4-15 marketing year (October 2014 – September 2015) at around 10254 million tons, down about 4% from an estimated 106.65 million tons in 2013-14, according to a statement from the agriculture Ministry