New Delhi: Fear and uncertainty around the rollout of goods and services tax (GST), in addition to a bumper harvest and demonetisation, has contributed to a sharp drop in farm commodity prices in the past few months, according to traders, analysts and an NCDEX commodity exchange report.
Currently, a significant volume of trade in wholesale agriculture markets is in cash and escape taxes. However, after GST rollout from 1 July, such trade will not be possible, and so traders have been liquidating their stocks purchased earlier at discounted prices, including stocks purchased immediately after note ban using old currency.
The fall in farm gate prices in the past few months fuelled farmers protests across several states with demands for remunerative crop prices and farm loan waivers. Read More.
Currently, a significant volume of trade in wholesale agriculture markets is in cash and escape taxes. However, after GST rollout from 1 July, such trade will not be possible, and so traders have been liquidating their stocks purchased earlier at discounted prices, including stocks purchased immediately after note ban using old currency.
The fall in farm gate prices in the past few months fuelled farmers protests across several states with demands for remunerative crop prices and farm loan waivers. Read More.