Federation says presence of brands in Tamil Nadu were confined to small territory and brand names were only meant to ensure consumers remember the mill. | Photo Credit: B. JOTHI RAMALINGAM

The Federation of Tamil Nadu Rice Mill Owners’ and Paddy-Rice Dealers’ Associations has urged Chief Minister M.K. Stalin to write to the Centre asking that the proposal to bring packaged rice and pulses under the ambit of the GST be rolled back.

Federation president D. Thulasingam said the proposal to include pre-packaged and pre-labelled rice and pulses will only lead to an increase in the prices of these essential commodities. “Even during the pandemic or during the past few months when diesel prices skyrocketed, the price of rice remained at a certain level. Now, this move of the Centre will put burden on the consumers, who are struggling to balance family budgets due to high inflation level,” he said.

So far, only registered basmati brands attracted 5% GST. Federation secretary A.C. Mohan said that in 2017, the Centre proposed to include branded rice under the GST regime. “However, since brands in Tamil Nadu were localised and are even now being sold only in respective towns and cities and do not have the trademark, the government exempted such local brands. We do not claim any trademark over the brand and the names are only meant to ensure consumers remember the particular mill,” he said.

Inclusion of rice and pulses under the GST would mean restrictions on free movement of these goods. “Even, if we move them inside the city, we will have to possess e-way bills, which could further push up prices,” he said.

The Federation has urged Mr. Stalin to raise the issue with the Centre and ensure free supply of rice and pulses.

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Printable version | Jul 8, 2022 8:00:36 am | https://www.thehindu.com/news/cities/chennai/mill-owners-demand-rollback-of-gst-on-pre-packaged-rice/article65612650.ece