Coriander traders in Rajasthan dissatisfied with high tax rate

20-Jul-2024 05:43 PM

Kota. Traders are facing a lot of difficulties due to high tax rate in Rajasthan, a major producer of coriander, and business in markets like Ramganj and Baran is continuously weakening. It is worth mentioning that a total tax of 4.35 percent is applicable on the business of coriander in Rajasthan, which includes 1.60 percent cess, 0.5 percent farmer welfare fund fee and 2.25 percent commission. In comparison, only 1 percent tax is applicable on coriander in two other important producing states - Gujarat and Madhya Pradesh.

Due to high local tax, coriander business from Rajasthan has started shifting towards Gujarat and Madhya Pradesh. The average daily arrival of coriander in both the major wholesale markets of the state has decreased to around 2500 bags, which is very less compared to the same period of the year. Producers and traders of Rajasthan have started turning towards the neighbouring states and Disawari buyers have also started preferring to buy coriander from these states because about 3.5 percent less tax has to be paid there.

Due to higher tax, coriander of Rajasthan is available at a higher price than Gujarat and Madhya Pradesh. During the current year, coriander production in Gujarat and Rajasthan has decreased a bit compared to last year, but production is expected to increase in Madhya Pradesh. Coriander is a Rabi seasoning spice which is sown in October-November and harvesting is done in February-March.

With the start of the festive season from next month, the domestic demand for coriander is expected to increase somewhat. Apart from this, the interest of importing countries is also likely to increase in its purchase. In view of this, the market may strengthen a bit. But due to the presence of previous outstanding stock, prices are not expected to rise wildly. With the continuation of the monsoon season, there is a possibility of some impact on the business of coriander in the major producing states.