Producer Levy, Evasion and Income Loss-Empirical Evidence from Coastal Districts of Andhra Pradesh

Empirical Evidence from Coastal Districts of Andhra Pradesh K Subbarao This paper seeks to assess the working of the producer levy scheme in Andhra Pradesh in the recent past, to examine the implications of converting this levy as a potential sourcer of procurement in the state in the near future and to estimate the income loss, if any, sustained by farmers on account of the operation of the compulsory levies during the period 1973-74 DESPITE impressive growth of rice production in Andhra Pradesh since the introduction of the new technology, public procurement of rice as a per cent of output fluctuated significantly during the period 1966-67 to 1975-76. During the last three years of this period (1973-74 to 1975-76), however, procurement of rice was impressive owing primarily to the operation of the compulsory producer levy which accounted for 40-50 per cent of the total rice procurement in the said period (see Table 1). The object of this paper, is to assess the working of the producer levy, scheme in Andhra Pradesh in the recent past, to examine the implications of converting this levy as a potential source of procurement in the state in, the near future and estimate the income loss, if any, sustained by fanners on account of the operation of the compulsory levies during the period 1973-74 to 1975-76.