Govt. aims for GST Council type model in agri marketing
- Undeterred by the delay of the committee asked to submit a report on the effective implementation of the minimum support price (MSP), the Centre is considering setting up a committee of all State ministers of agriculture marketing with the objective of making uniform taxes and levies on agriculture commodities as well as free inter-State movement.
Highlights:
- Though the issue is at a discussion stage currently, such a committee may help evolve a GST Council type structure in future if it becomes successful.
- While agriculture is a State subject, agricultural trade comes under Concurrent list. As the government is also considering having a uniform levy (the fee and other local cess) across the country through legislation, the formation of a committee of State ministers will help in creating a consensus.
- There is also a possibility of making an important State agriculture minister as the chairman of the panel and making it rotational with a fixed tenure, the sources said.
- The Sanjay Agarwal-led committee, constituted by the Centre on MSP, has held six meetings in two years from July 2022, Agriculture Minister told Parliament on July 26.
- Though he said the government was committed to ensuring the full benefits of MSP reach the farmers, he evaded a direct answer on whether a Bill will be introduced to make MSP legal.
Prelims Takeaway:
- MSP
- Concurrent List