Punjab farmers seek withdrawal of VAT on mentha oil

Mentha crop growers of Punjab today demanded that the state government should withdraw the 12.5 per cent VAT levied on the mentha oil, or thereatened to cut down the area under methna cultivation in the state.

The demand was made following the recent confiscation of consignments carrying mentha oil by the Punjab Excise and Taxation department.

Mentha oil is the final product made extracted from methna crop, it is used adding flavour.

"Our buyers have refused to pay us and threatened to procure oil from Uttar Pradesh as the mentha oil which was bought from Punjab are being detained by the state Excise and taxation department on the pretext of not paying tax," Punjab Mentha Crop Growers Association President Avtar Singh, told reporters.

The mentha growers had apprised Punjab Chief Minister Parkash Singh Badal of the situation but nothing concrete has emerged so far, he said.

"We have targeted to bring 1 lakh acre under the cultivation of mentha next year from 40,000 acre at present, but it seems now it would not happen," he added.

Grown in Hoshiarpur, Nawanshahar, Kapurthala and Ludhiana, the crop fetches Rs 4000-5000 per acre as return to farmers.

Production of mentha oil in the state currently stands at 1000-1200 tonne per annum, increased from 700-800 tonne last year.