Agri market cess collections down due to crop failure

- Falling prices of chilli and cotton and reduction in paddy cultivation area in Palnadu region are prime reasons for drop in
cess collections

Guntur: The market cess collections in 21 agriculture market yards in the district stood at Rs 100.84,3.000 till March 21 against the
set target of Rs 134.83,40,000, achieving 75 per cent of targets.

Following the fall of prices of chillis and turmeric, the farmers suffered heavy losses. Currently the government is collecting one per
cent agriculture cess from agriculture markets, which led to falling of cess collections.

According to official sources in agriculture market department, due to fall of turmeric prices, the Markfed purchased turmeric from the
farmers in the district. According to norms, the Markfed need not pay market cess to agriculture markets. Due to falling of chilli prices,
the government got less market cess from chillis. In addition to this, the government gave bonus of Rs 1,500 per quintal of chillis. The
government had purchased 53,000 quintal chillis from the under the Market Intervention Scheme to extend helping hand to famers. As
a result, market cess collections had fallen in district. Similarly, cotton and red chillis production has come down in the district due to
adverse climatic conditions. The Markfed had purchased Bengal gram from farmers.

Due to lack of sufficient water in Nagarjunasagar dam, the government did not release water to Nagarjunasagar right canal for kharif
and rabi. As a result the farmers cultivated ID crops. Assistant director of agriculture marketing, Guntur district, P Gopi said “Due to fall
in agriculture yield and prices, the department got less market cess collections during 2017-18 financial year. Fall in paddy cultivation
area in Palnadu is also one of the reason for falling market cess.”

T Bhaskar Reddy, AP Agriculture Market Employees Association president said, “The government is fixing higher targets to the
department when agriculture yield, chilli and cotton prices are falling. This is also one of the season for falling market cess collections
to department. Bengal gram and black gram farmers are not getting MSP which led to falling of cess collections to government.
Despite that we are trying to improve cess collections to the government.”