Traders Seek Government Intervention to Save Coriander Trade

Rajasthan's coriander trade is struggling due to state government policies, prompting traders to seek the Chief Minister's intervention. However, their demands have so far been ignored. Devishankar, a trader from Ramganj Mandi, highlighted the adverse impact of high taxes on the coriander trade, causing a shift of business to neighboring states like Madhya Pradesh and Gujarat.

Comparative Tax Rates Affecting Trade

• Today, around 2,000 sacks of coriander arrived in Ramganj Mandi, significantly lower than normal.
• Despite this, buying remained sluggish, with Badaami and Eagle Coriander prices stable at $0,77-$0,80 and $0,82-$0,84 per kg, respectively.
• In Baran, only 500 sacks arrived, with prices at $0,76-$0,77 and $0,81-$0,83 per kg, respectively.
• Devishankar explained that high taxes in Rajasthan, including a $0,02 cess, $0,006 Krishak Kalyan Kosh tax, and $0,027 commission, total $0,053 per kg.
• In contrast, Merta, Madhya Pradesh, and Gujarat impose much lower taxes on coriander.

Farmers and Buyers Turn to Neighboring States

The lower tax rates in neighboring states have driven Rajasthan farmers to sell their coriander crops in Madhya Pradesh. This shift has led to a significant reduction in arrivals in Rajasthan's famous coriander mandis, such as Ramganj and Baran. High taxes not only push coriander out of Rajasthan but also drive away Disawari buyers, who prefer the lower tax rates in neighboring states.

Devishankar mentioned that traders had met the Chief Minister to address this crisis, requesting tax alignment with neighboring states or Merta. However, the government has yet to respond to these pleas.

In summary, Rajasthan's coriander trade faces significant challenges due to high state taxes, driving business to neighboring states with lower tax rates. Despite efforts by traders to seek government intervention, no action has been taken. The current market conditions and regional trade shifts underscore the urgent need for tax reforms to sustain Rajasthan's coriander trade.