Sharp fall in vegetable prices, lack of cash hit farmers, traders

With the steep hike in excise duty in the past couple of months, an average consumer of petrol now pays over 275% in taxes to centre and states on a litre of the fuel.  The base price of petrol is just about Rs 18. The taxes are close to Rs 50 and the pump price is over Rs 72.

India imports 85% of all its crude oil demand.  After a steep hike in excise duty in the past two months despite a hold on daily price revisions by the oil public sector undertakings (PSUs), Indian consumers now pay 275% collectively in excise duty to state and centre. 

The central government hiked excise on petrol and diesel by Rs 10 and Rs 13 respectively last month. The excise duty on petrol is taxed around Rs 33-a-litre while the same on diesel it is Rs 32.

The Value-Added Tax (VAT) on both petrol and diesel is Rs 16.44 and Rs 16.26 respectively. Both the taxes together are around Rs 49 while it is sold at petrol pumps at 73-per-litre.

These two taxes cumulatively account for 69% of tax which is higher than anywhere else in the world. The same is taxed at 19% in the US, 47% in Japan, UK 62% and 63% in France. The government does not pass on the benefit of lower crude oil prices to the customer.

It is to be noted that Indian consumers continued to pay Rs 70-a-litre even when crude oil prices hit a paltry US $ 20-a-barrel on April 12.

Former finance minister and Congress leader recently took a jab at the Centre over rising prices stating, “Fuel selling prices raised twice in two days, following tax hikes two weeks ago. This time to benefit oil companies. Government is poor, it needs more taxes. Oil companies are poor, they need better prices. Only the poor and middle class are not poor, so they will pay”.

Bengaluru, Mar 30: The nationwide lockdown has left the state on the brink of a fresh agrarian crisis.

The lack of transport facilities spells doom for ready-to-harvest grapes worth Rs 500-600 crore in Bengaluru Rural, Chikkaballapur and Kolar districts. Unable to find buyers, several farmers have begun dumping their produce into compost pits.

On Sunday, Munishamappa, a farmer in Chikkaballapur, emptied four truckloads of grapes into the pit as buyers didn’t turn up due to the lockdown. “If the grapes wither and fall to the ground, it will affect the soil’s fertility and I will be forced to dispose of them,” he said.

Venkata Krishnappa, Munishamappa’s son, said their 1.5-acre vineyard yielded 25 tonnes of grapes. “Just before the lockdown, 10 tonnes were harvested and delivered to the market. Due to lack of transport, buyers haven’t turned up for the remaining 15 tonnes which we are dumping into the pit.”

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Anjaneya Reddy, a farmer leader, said that in Chikkaballapur alone, they have cultivated grapes on 2,000 acres. “Even if you consider 15 tonnes per acre as yield, there are about 30,000 tonnes ready to be harvested in the district. At a market rate of Rs 50 to Rs 60 per kilogram, the net worth will be Rs 200 crore to Rs 300 crore. And if you consider the crop in Kolar and Bengaluru Rural, grapes worth Rs 500 to Rs 600 crore are at stake,” he explained.

The ‘Dilkush’ grapes is the most preferred variety of domestic consumption, according to the farmers.

This apart, farmers would have invested about Rs 3 lakh to 4 lakh per acre on fertilisers, pesticide and labour. “With markets being shut and no of the transport facilities available, farmers are forced to dump their produce into pits. It is high time the government intervened and provided us with market options so that farmers can sell at an affordable price of Rs 30 to 40,” Reddy said.

Somu, a farmer in Ganjam village of Srirangapattana, dumped two tonnes of chikku (sapota) citing market shutdown in Mandya. Reddy appealed to the government to emulate the Maharashtra model where the government is helping farmers market fruits through Hopcoms or dairy units as nutrient supplements to people.

Mangaluru, Jun 10: A youth, who staged suicide drama at Netravati River Bridge near Thokkottu on the outskirts of the city, reportedly found alive in Shivamogga today.

Praveen Saphalya a 28-year-old man from Kurnad village in Bantwal taluk was missing since yesterday. His motorbike was found abandoned on the Netravati bridge at around 7:30 p.m. on Tuesday (June 9).

It was suspected that he had committed suicide by jumping off the bridge. Hence, police and fire fighters had launched a search operation for his body in the river with the help of divers on Wednesday morning.

Meanwhile, the missing person reportedly surfaced in Shivamogga this morning.

According to sources, Saphalya was working as salesman for SLRK Limited, is reportedly deep in debt. Unable to face the harassment of his creditors, he had parked the bike on the bridge and left the city, sources said. Local police are probing the matter.

Also Read: Mangaluru: 33-year-old man found dead on Netravati river bank