Seeking to make state conducive to raisin trade

BANGALORE: The state government has slashed Value Added Tax (VAT) on the sale of raisins from 14 per cent to two per cent.Minister for Cooperation Laxman Savadi addressed the media here on Wednesday and said that the total turnover of raisin market was estimated at about Rs. 500 to Rs. 600 annually and farmers were selling a majority of the produce in Maharashtra where VAT on it was zero. “The high rate of VAT had hurt not only the farming community but also traders causing loss to the state exchequer,” he said.He stated that the government has issued a notification in this regard.The minister also spoke on the government’s proposal to take similar steps to reduce the cess on turmeric, maize and jaggery.A decision in this regard will be taken after discussions with representatives of the Agriculture Produce Market Committees. He added that there has been a long-standing demand from APMCs operating in border areas for fixing the cess on such products on par with those in Maharashtra and other states.“The issue of offering waiver on farm loans would be discussed with Chief Minister D V Sadananda Gowda soon,” Savadi said.He also informed that the cut-off date for repayment of farm loan availed last year would be extended to October this year.The minister added that sugar units functioning in cooperative sector would comply with any decision of state government on the supply of energy.