Chairman of different district dairy unions of Gujarat have demanded that the state government should either abolish or reduce value added tax (VAT) on molasses that is used as cattle feed in dairy industry.
A Gujarat Co-operative Milk Marketing Federation (GCMMF) delegation that met Chief Minister Narendra Modi on Thursday made this demand.
"During our meeting, we raised several issues, including that of steep raise in the prices of molasses, which has increased the burden on state farmers," GCMMF's in-charge chairman Parthi Bhatol told TOI.
"Instead of earlier Rs 150 to Rs 200 price range per tonne, molasses now costs anywhere between Rs 8,000 and Rs 10,000 per tonne. At the same time, in Gujarat, 15 per cent VAT is imposed on raw material, which in turn increases the price of cattle feed. The chief minister has assured us of taking positive steps," said Bhatol, adding that in other states only 12 per cent VAT is applicable on molasses.
He added that the delegation also brought to Modi's attention, amendments in the Co-operative Act as recommended by various committees.
"Many committees in the past have suggested changes in the Co-operative Act. For instance, there is a suggestion regarding duration of an elected co-operative board. Presently, tenure of the board and chairman is restricted to three years, but there have been suggestions that the tenure should be increased to five years," he said. "Similarly, some committees have also suggested that government representatives should not be appointed in co-operative bodies," he added.