Tax on Rice grown by Farmers

i don't  think any tax is levied on agricultural produce. However it will be better if you contact a local tax consultant bcoz it varies from state to state.

In our state (Orissa) there is no such tax, we directly sell the paddy to the LAMPS and other Govt. controlled Orgs. 

Section 10 (1) of the Indian  Income tax act read with Article 270 of the Constitution of India prohibit Central Government to levy tax on agricultural income, and it is a State prerogative, although there is a continuing debate to shift it to central Income tax. As to what is agricultural income is given in section 2 of sub section (1A) of the Income tax act of 1961. As such as stated by Prabodh Kumar, you may contact the Karnataka Income tax Officer.

If you are a farmer and its your own produce then you not need to bother about taxes. Farmers from UP, Punjab, Haryana and Rajasthan sell their paddy in Delhi without any problem, because there you can fetch the best price there. You may need to pay Chungi which is near to grain market and it is just few rupees. Sometimes a state govt gives a bonus of additional to central govt. minimum support price (MSP) and farmers from neighbouring states reach their with their grains. In such situation if you want to sell it to govt agency then they may ask for ration card. If they are not able to handle the huge amount of grain coming to market then rarely they ask for the verification from local patwari that how many acre of that crop you had grown.

In 1970s there was wheat shortage that time wheat was about 100 Rs per quintal in Delhi and about 70-75 in neighbouring states. Farmers used to smuggle in dark on camels, taking KACHCHA roads and police used to catch and harass them. But now things have changed and laws are relaxed.