The Hindu : Andhra Pradesh News : VAT on oil palm to be scrapped

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Thursday, Jun 23, 2011
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Andhra Pradesh

Andhra Pradesh

VAT on oil palm to be scrapped

Special Correspondent

Subsidy on micro irrigation systems to be increased
Scheme to provide cold storage facility to farmers soon

HYDERABAD: The government has decided to scrap value added tax (VAT) being collected on oil palm produce in a move to encourage cultivation of this crop in the State. Oil palm is currently sown over an extent of only 72,000 hectares.

The decision to remove VAT was taken by Chief Minister N. Kiran Kumar Reddy while reviewing the activities of the Horticulture Department here on Wednesday. He wanted officials to prepare plans to extend assistance to oil palm farmers to sink borewells and purchase pumpsets.

Subsidy on drip up

The Chief Minister also gave his nod to enhance the subsidy on purchase of micro irrigation systems like drips and sprinklers and also the extent of area permitted under the subsidy. He ordered the release of Rs 59 crore worth arrears due to farmers as subsidy.

Briefing reporters later, Horticulture Minister R. Venkat Reddy and Commissioner for Horticulture I. Rani Kumudini said a scheme would be launched shortly to provide cold storage facility to farmers for storage of vegetables on rent of 70 paise per kg.

Direct sale of mango

Horticulture crops, particularly vegetables, would be encouraged on a large scale in the districts surrounding Hyderabad, Ranga Reddy, Medak and Mahabubnagar.

As Andhra Pradesh always accounted for a bumper mango crop, mango farmers would be allowed to sell their produce directly to consumers hereafter at all rythu bazaars in the State during May-June.

State level plan

The Chief Minister directed officials to prepare plans to increase the area under horticulture crops with focus on urban areas, as the Planning Commission earmarked a big budget for this sector. He noted that the extent under horticulture had gone up by 22.7 per cent in the State and the produce by 72 per cent since 2003. A Rs. 1,234-crore State-level plan was on the anvil. Earlier, he inaugurated a “horticulture alert system” under which farmers would get voice messages in Telugu daily from 10 a.m. to 1 p.m. on control of pests, etc.

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