Farm sector seeks tax incentive, more funds

NEW DELHI:  Farmers’ organisations on Tuesday urged the Finance Ministry to increase urea prices for balanced use of fertilisers, reduce fuel taxes, include alcohol in the GST regime and extend the Pradhan Mantri Kisan SAMPADA Yojana outside Mega Food parks. 

Representatives of these organisations, office bearers of National Cooperative Union of India, Punjab Agriculture University and International Food Policy Research Institute and companies engaged in the farm sector met Finance Minister Nirmala Sitharaman for a pre-Budget consultation. The meeting was also attended by stakeholders from the agro-processing industry.

“Incentivize balanced use of fertilisers; raise urea price and simultaneously decrease price of P&K fertilisers, so no added burden is imposed on the farmers or the government,” Bharat Krishak Samaj (BKS) said in its representation.

BKS Chairman Ajay Vir Jakhar also sought reduction in taxes on diesel and transport subsidy on fruits and vegetables, but demanded tax on unhealthy foods. BKS also pitched for tripling investment for micro-irrigation and solar pumps for farmers and funding for distribution of soil moisture measuring sensors.

“Prioritise investment in human resources over infrastructure. There are about 50 per cent vacancies in agriculture research institutions across India. Target two per cent expenditure on agri R&D of agriculture GDP over the next few years,” said BKS. Meanwhile, the agri and food processing industries, who attended the hour-long meeting, sought tax exemption and extension of funds to food processing units, outside the mega food parks.

“Low interest finance and other benefits of the SAMPADA scheme of the Ministry of Food Processing Industry should be made available outside the Mega Food parks. This will help in creating a level playing field for the food industry and help facilitate investments,” pointed out Phiruz Khambatta, a member of the CII National Council on Food Processing.

He further added that for the existing food processing projects, any additional capital investment more than 50 per cent of existing book value of plant and machinery should be treated as new investments and should also be eligible for a five-year tax holiday.

Collaboration between Bangladesh and India

Commerce Minister Piyush Goyal said that India and Bangladesh need to work together in areas such as farm mechanization, food processing and fisheries, as well as double productivity from the current 4.5 tonnes per hectare.