Karnataka's Bold Move: Minister Orders Crackdown on Ethanol Plants and Rice Mills Evading Market Fees, Unveiling a Rs 1,000 Crore Revenue Loss!

In a significant move to bolster state coffers and ensure fair trade practices, Karnataka's Minister for Agricultural Marketing and Sugarcane Development, Shivanand S Patil, has ordered stringent action against ethanol manufacturing units and rice mills that have been found evading market fees. This decisive directive comes after a shocking revelation that such illicit activities have led to an estimated revenue loss of a staggering Rs 1,000 crore to the state's Agricultural Produce Market Committees (APMCs).

The minister’s firm stance was articulated during a high-level review meeting held in Kalaburagi, where he emphasized the critical need to recover these lost revenues and prevent future evasion.

Patil highlighted that APMC yards, vital hubs for agricultural trade, are facing financial strain due to these underhanded practices. The evasion of market fees not only deprives the APMCs of crucial funds needed for infrastructure development and farmer welfare programs but also undermines the very spirit of transparent market operations.

During the meeting, officials presented alarming statistics: out of approximately 300 ethanol units operating in Karnataka, a significant number have been sidestepping the mandatory market fees.

These fees are levied on transactions of agricultural produce, and their evasion directly impacts the APMC’s ability to serve its stakeholders effectively. Minister Patil expressed deep concern over this widespread non-compliance, stressing that such actions are unacceptable and will be met with the full force of the law.

To combat this systemic issue, Minister Patil has issued a clear mandate to APMC officials: immediately identify and notify all ethanol units and rice mills that are not paying market fees.

Furthermore, he has instructed officials to initiate legal proceedings against these defaulters to ensure prompt recovery of outstanding dues. This includes imposing penalties and taking measures to prevent future infractions. The minister made it unequivocally clear that there will be no leniency for those found violating the regulations.

Adding another layer to the enforcement efforts, Patil revealed plans to install weighbridges in APMC yards.

This measure aims to prevent the surreptitious transportation of agricultural produce without proper assessment and fee payment. The installation of weighbridges will provide an accurate record of goods entering and exiting the yards, significantly reducing opportunities for evasion and enhancing accountability.

This proactive step underscores the government's commitment to creating a fair and equitable trading environment for all.

The minister also urged officials to expedite the recovery of dues from sugar factories. He noted that several sugar mills owe substantial amounts, with some outstanding for over two decades.

This long-standing issue has further exacerbated the financial woes of APMCs. Patil's comprehensive approach targets not only current defaulters but also addresses historical non-compliance, aiming for a complete overhaul of the market fee collection system. This assertive drive by the Karnataka government signals a renewed commitment to fiscal discipline and ethical conduct within its agricultural markets, promising a more robust and transparent future for farmers and traders alike.