Industrial products are priced at the end by tagging a price on the product pack. Similarly the agricultural produce must also be given scientific price based on end product that is used by the consumer. This is my argument.
An article in kannada has been published by me in Krishi Munnade - a monthly popualr kannada journal published by UAS Dharwad
Krishi Utpannagalige Vaignanika bele : ondu chintane
Krishi Munnade, 2016, 29 (7), 30-33
In this article I have indicated means of achieving the scientific pricing. The government is collecting tax at various stages of sale of agricultural goods. New tax system (day trade tax) has to be there on any produce. on value addition there should be a tax based on profit. This profit share has to go to the farmer. Take for example Paddy price is around Rs.2000 per quintal. One quintal of paddy can yield 0.75 quintal of rice. That is one kg of paddy can yield 0.75 kg of rice. This 0.75 kg can be used for 5 meals in hotels @ Rs.150-300. But the farmer obtains only Rs.20 per kg paddy.
Take another example of sugarcane. One ton of cane gives one quintal of sugar. That is 10 kg of cane gives one kg of sugar. This one kg sugar is used to produce three kgs of sweets and sold @ 150-300 per kg. In three kg sweets there is one kg of sugar which is also sold at 150-300 Rs./kg. Hence take any produce at the end there will be nearly 10 times of price than the original raw produce. The government is collecting tax at various stages. The goods tax initially should be on the raw produce. The tax further should only on the difference in price from stage to stage. I hope this is the basis for GST that is intended by GOI.
What are your interactions for the proposal?
You may be expert in any field. Please through some light on this. Basically I am a soil scientist. But I have raised this idea in the interest of farmers.
Thanks
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