Surendran meets FM over agri cooperatives

Thiruvananthapuram: The state cooperative department has urged Union finance minister Nirmala Sitharaman to make an immediate intervention to prevent the income tax department’s recent aggression against primary agriculture cooperative societies (PACSs), ‘which does not come under the purview of I-T Act.’
A delegation from the department, led by state cooperation minister Kadakampally Surendran, met the finance minister in person in Delhi and submitted a memorandum in this regard. “Though PACSs enjoy tax exemptions as per Section 80(P) of the I-T Act, the I-T officials have recently been pursuing the societies and threatening society presidents with huge fines. The I-T department has started imposing 100% penalty on deposits above Rs 2,0000 in cash with retrospective effect,” the minister told reporters on Thursday.
The FM, Surendran said, responded favourably and directed the finance ministry officials to examine the matter promptly.
“The FM said that she too thought PACSs were not supposed to come under the purview of the I-T Act and that she would closely examine what’s happening in Kerala with regard to existing tax exemptions for PACSs,” he said.
The minister, who was accompanied by officials, including cooperation secretary Mini Antony, also raised several other demands, including an increase in re-financing limit on agriculture loans from NABARD to 60% from the existing 40% and a cut on its interest rate from 4.5% to 3%. The state has also asked for an immediate short-term loan of Rs 2,000 crore from Nabard at an interest rate of 6% instead of the existing 8.55%, he said.
“We have also asked for a special loan of Rs 1,000 crore from Nabard in the wake of natural calamities at a low interest rate and grants for cooperative banks, which suffered losses in floods for restoration of basic facilities. The FM has assured a favourable action after discussions with Nabard officials. She also said that deserving financial aid will be provided to the flood-affected state after examining the reports of the state government and the visiting central team,” Surendran added.
On the state’s demand for facilitating further extension of moratorium on agricultural loans from cooperative banks in the wake of floods and the required restructuring of loans to avoid NPA, the FM said it could be considered if necessary once the moratorium announced after last year’s floods.