Union Budget 2021: FM Sitharaman announces agricultural infrastructure and development cess

Finance Minister Nirmala Sitharaman on February 1 announced an agricultural infrastructure and development cess (AIDC) on some goods to support the sector that has been one bright spot of the coronavirus-hit economy.

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This cess will be applied on a "small number of items" and the government has taken care not to place an additional burden on consumers on most items, Sitharaman said as she presented the budget for 2021-22.

"There is an immediate need to improve agricultural infrastructure
so that we produce more, while also conserving and processing agricultural

output efficiently. This will ensure enhanced remuneration for our farmers," Sitharaman said.

AIDC of Rs 2.5 per litre has been proposed on petrol and Rs 4 per litre on diesel.

Here's the AICD placed on other commodities:

2.5 percent on gold, silver and dore bars
- 100 percent on alcoholic beverages
- 17.5 percent on crude palm oil
- 20 percent on crude soyabean and sunflower oil
- 35 percent on apples
- 1.5 percent on coal, lignite and peat
- 5 percent on specified fertilisers (urea, etc)
- 40 percent on peas
- 30 percent on Kabuli chana
- 50 percent on Bengal Gram/Chick Peas
- 20 percent on Lentil (Mosur)
- 5 percent on Cotton (Not Carded Or Combed)(This is a developing story. Please check back for updates.)