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krishak kalyan - Shanmugam IAS academy in coimbatore
krishak kalyan


What’s in news?

Krishak Kalyan fees was levied on agricultural products.

Key data’s:

  • Levied by: The Krishak Kalyan fees (2%) was levied by Rajasthan State government.
  • Levied on: The fees levied on agricultural produce brought or bought or sold in mandis.
  • Collected fund: The 2 per cent fees collected will be deposited in the Krishak Kalyan Kosh — dedicated to the welfare of farmers in the state.

Opposition Raised / criticism:

  • The farmers already getting much lower than the announced minimum support price (MSP) for their produce in the Mandis.
  • The 2% tax will reduce their income – by the traders, reduce the price of the raw materials further – inorder to tackle the loss.
  • To sustain the loss, the farmers have to move to other states (neighbouring state Punjab) – which make further loss for both state government and the farmers.
  • Also the traders incurring losses because of people choosing to sell the produce to black marketers, and agriculture produce from Rajasthan being sold outside the state.
  • This further affects the farmers and total burden will be pass on to the farmers which make their survival tough – at the time of COVID-19 lockdown.

Government’s response:

  • The government has insisted that the money collected as Krishi Kalyan fees will be spent on the welfare of farmers.
  • The fee will be a burden neither on the people associated with the mandis nor the farmers. This charge is meant for the next point of sale, after farmers sell their produce.
  • This money collected will actually benefit them as it will be spent for their welfare. The entire money will be used on ensuring that the farmers get adequate price and providing them other incentives.

Data to know:

Background – Krishak Kalyan Kosh:

  • Through the ‘Rajasthan Agricultural Produce Markets (Amendment) Ordinance, 2020’, Krishak Kalyan Kosh was created by amending section 17 of the Rajasthan Agricultural Produce Market Act, 1961.
  • The amendment adds a new section 17A states that, ‘The market committee shall collect Krishak Kalyan fee from the licensees in the prescribed manner on the agricultural produce brought or bought or sold by them in the market area at such rate as may be specified by the state government, by notification in the official gazette. The fee collected shall be deposited in the Krishak Kalyan Kosh constituted under section 19-A’.

Links to note:

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