Karnataka minister orders action against ethanol plants, rice mills evading market fees

Shivanand Patil directs notices, criminal cases, and license revocations to curb revenue loss and trade diversion.

Bengaluru: In a move to tackle market fee evasion, Agriculture Marketing Minister Shivanand Patil on Friday directed authorities to issue notices and file criminal cases against ethanol plants and rice mills failing to pay the required market fees.

His directive came after reports revealed that several ethanol plants, particularly those using maize and rice, were defaulting on their market fee payments depriving the state of vital revenue.

The minister was speaking after a state-level progress review meeting of the Agriculture Marketing Department at Vikas Soudha in the city.

Patil, who expressed concern over the widespread market fee evasion, said that essential agricultural products like maize, rice, betel nuts, black pepper, and cotton serve as crucial revenue sources for Agricultural Produce Marketing Committees (APMCs). He ordered immediate action against the offenders, while urging the authorities to stay vigilant and to closely monitor the situation.

Patil voiced frustration over the inefficacy of vigilance teams established across four divisions to curb market fee evasion. Despite resources being allocated, market fee evasion continues unabated, partly due to a lack of cooperation from certain officials.

He pointed out that border districts like Belagavi and Kalaburagi were increasingly seeing products illegally diverted to neighboring states, with some commercial tax officials and members of the vigilance teams allegedly facilitating these activities. He warned that such practices must be stopped immediately.

The minister also raised concerns over the declining trade of betel nuts in APMCs, specifically pointing out that nearly 50% of the expected betel nut trade was missing in some APMCs. He instructed officials to gather data from the Central Arecanut and Cocoa Marketing and Processing Cooperative (CAMPCO), Malnad Areca Marketing Co-Operative Society Limited (MAMCOS), and other APMCs to understand the reasons behind the decline and find long-term solutions.

Expressing concern over APMC lands being misused for non-agricultural purposes, Patil emphasized that such land should be protected and used only for agricultural activities.

He also highlighted inefficiencies in APMC warehouses and the delayed distribution of agricultural products, despite rate revisions. Additionally, he stressed the importance of timely reporting of price instabilities to ensure price stabilization and prevent unauthorized decisions regarding APMC funds.

Further, Patil focused on the mismanagement of Hubballi APMC, North Karnataka's largest APMC, where numerous complaints about market fee collection and trade diversion had been received. He made it clear that such inefficiencies would not be tolerated.

Finally, as part of a broader crackdown, Patil ordered the revocation of trade licences of vendors who had not engaged in business for over five years and criticized APMC secretaries for focusing on issuing licenses instead of performing their primary duties.