Millers Urge GST Exemption for Rice and Fair Power Rates for Rice Mills


Published on: January 9, 2024.

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Rice millers in Chennai have suggested that waiving the Goods and Services Tax (GST) on rice and implementing a separate power slab for rice mills could help reduce the price of rice in the market. D. Thulasingam, the president of the Federation of Tamil Nadu Rice Mill Owners and Paddy Rice Dealers Association, highlighted the increase in power tariff, the growing demand for super-fine rice, the imposition of GST, and the rise in transportation costs as the main reasons for the higher prices of rice.

Thulasingam also mentioned that, prior to the implementation of the GST regime, only five states in the country collected taxes on rice. However, with the new regime, tax is being uniformly levied on all food grains, which he believes should be abolished. Furthermore, Dr. Mohan, the federation’s secretary, explained that despite the ban on exporting super-fine and raw rice varieties, as well as the 20% customs duty on par-boiled rice, exports continue to drive up demand and prices in the market.

The rice millers are hopeful that with the upcoming harvest season, new arrivals of rice will help alleviate the price pressure. However, they maintain that the waiver of GST on rice and the establishment of a separate power slab for rice mills are necessary steps to significantly reduce rice prices.

Source: [The Hindu](https://www.thehindu.com)