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The operational efficiency of trucks carrying agriculture and horticulture produce stored in various cold storages houses from beginning to end point has enhanced to an extent of 550 km a day post GST as most of inter-state and intra-state barriers have collapsed after GST implementation, the new taxation that has benefitted the most the logistics sector, according to CEO, National Centre for Cold Chain Development (NCCD), Pawanexh Kohli.
Kohli who is also Chief Advisor, Department of Agriculture, Cooperation & Farmers Welfare, however, said that since a vast majority of agriculture and horticulture items were GST exempt, its ramifications on the cold chain sector so far have been quiet positive barring on a few fronts and his Department is seeking their redressal with Department of Finance.
Speaking at a National Conclave on Cold Chain Development under aegis of PHD Chamber of Commerce and Industry in New Delhi today, Kohli informed that the running efficiency of trucks had increased by an average of 250 km a day post GST which used to be about 300 km a day pre GST on account of the fact that barriers relating to inter-state and intra-state trade have largely disappeared since July 1, this year.
According to him, the logistics sector has been beneficiary of GST implementation to a large extent but on account of higher service tax on certain segments, the logistics costs have gone up. The tax has also gone up considerably on equipment and other auxiliaries that go into making of cold chains and cold storages and since NCCD received certain inputs on these fronts, the Department of Agriculture is undertaking an exercise to seek their redressal with Department of Finance and other stakeholders so that the surfacing anomalies are corrected, he added.
Chairman, Committee on Logistics Management, PHD Chamber, RS Bedi in his welcome remarks emphasised on further expansion of cold storages adding that these need to be modernised with increased capacities as the growth of agriculture and horticulture also depend on these facilities to equip farmers with gains that are consumerate to their labour.