Cess imposed on the agriculture products purchased by the Agriculture Produce Market Committee (APMC) yards across Karnataka has forced farmers to divert their produce to neighbouring states.
While APMC in Karnataka levies 1.5 percent cess, other APMCs of neighbouring states like Andhra Pradesh, Maharashtra and Tamil Nadu do not impose cess, and if they impose, it is of small amount.
Ramesh Bafna, Member, Hubli APMC has requested Chief Minister H D Kumaraswamy to abolish the APMC cess as the business in AMPC yards in the state had been adversely affected.
Bafna has also expressed his concern over the Cotton Corporation of India (CCI) directly purchasing the cotton from farmers.
Since farmers have started to approach CCI directly, tuning between cotton traders and farmers is disturbed.
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