Haryana: Rice millers hail GST reduction on fortified rice kernels to 5%

By Parveen Arora

The rice millers of Haryana have expressed relief and gratitude after the GST Council reduced the tax rate on fortified rice kernels (FRK) from 18 per cent to 5 per cent. The decision, taken during the 55th GST Council meeting chaired by Union Finance Minister Nirmala Sitharaman, has resolved a significant issue for the millers.

The millers had recently raised the matter with Chief Minister Nayab Singh Saini, Union Minister Manohar Lal Khattar, Karnal MLA Jagmohan Anand and BJP district working president Brij Gupta. Their persistent lobbying led to the reduction and the millers thanked the leaders for their support.

“We are grateful to Union Ministers Nirmala Sitharaman, Manohar Lal Khattar and Chief Minister Nayab Singh Saini for this relaxation in GST,” said Saurabh Gupta, president of the Karnal Rice Millers and Dealers Association. Gupta explained that the earlier GST rate of 18 per cent created financial hurdles, as millers had to buy FRK at Rs 5,000 per quintal plus 18 per cent GST, while the government reimbursed only 5 per cent GST.

This disparity had stalled the delivery of custom-milled rice (CMR) since millers are required to mix 1 per cent of FRK into the rice supplied to the Food Corporation of India (FCI). “With the GST rate reduced to 5 per cent, the millers will resume CMR delivery,” Gupta confirmed. He also urged the FCI to allocate godowns closer to the rice mills for easier deliveries.

Amarjeet Chhabra, state president of the Haryana Pradesh Rice Millers and Dealers Association, called it a significant victory for the industry. “This has been a long-pending demand. Every year, we had to advocate for GST relief on FRK. This decision has brought much-needed stability and relief to rice millers,” Chhabra said.

The GST reduction is expected to streamline operations and ensure uninterrupted supply of fortified rice to the FCI.

This article was been republished from The Tribune.